Dormant huf

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 February 2017 "abc" HUF is having a holding in a pvt ltd company but the HUF has not filed any return for last two years. now the present karta of the HUF is also the member of the company & want to takes the shares HUF . how it can be possible if the HUF donot have any bank account with it and has not filed any income tax return.

CA Hariprasad Nayak

CA Hariprasad Nayak (Expert)
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23 February 2017 Hi,

HUF may not have filed the return as the income did not exceed the maximum non taxable limit. HUF may or may not have bank account, but may receive contribution from members for the investment in shares. This should not prevent them from becoming a shareholder.

Regards,

Haripasad Nayak

Querist : Anonymous

Querist : Anonymous (Querist)

24 February 2017 THANKS YOU SO MUCH SIR FOR THE QUICK REPLY

but HUF wish to sale it shares to the KARTA and all the affairs of the HUF is closed for the last two years. and when KARTA purchase shares from HUF, he has to make payment which is probable in LAKHS and cash is not allowed and banks are not in operations.

NOW WHAT ARE THE LEGAL IMPLICATIONS

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Expert : Anonymous

Expert : Anonymous (Expert)

26 February 2017 hi, a huf cannot be deemed as to have closed unless there is partition among the members. So legally the HUF is till in existence- they can reopen bank account and get the money

Querist : Anonymous

Querist : Anonymous (Querist)

27 February 2017 THANK YOU SO MUCH SIR