By Chirag Nangia
It is not clear where we should show dividends from mutual funds (not capital gains) in ITR forms for AY 2021-22. Please clarify.
— S Natarajan
Income from dividends is classified as income from ‘Other Sources’, accordingly, for AY 2021-22, the exact same could be reported in ‘Schedule OS’, below head ‘gross income chargeable to tax at normal applicable rates’. Click on ‘add details’, specify the nature of earnings as ‘dividends, gross’ and enter the quantity of earnings.
After the death of a karta, who is the next karta — eldest son or wife of the karta? (b) What approach has to be followed to modify the karta in bank deposits, demat accounts, and so forth? (c) Will the answer be diverse if an current karta, nevertheless alive, is to be replaced by a further member as a karta? — Rajesh B Shah.
(a) On demise of the karta of an HUF, the next eldest surviving coparcener in the family automatically becomes the karta. A daughter can turn out to be a karta of the HUF if she is the senior most adult coparcener in the family. However, wife of deceased karta can’t turn out to be karta due to the fact she is not a coparcener to the HUF.
(b) In the occasion of death of a karta, a declaration from the members forming portion of the HUF along with the death certificate of the deceased karta could be mandated by banks in order to give impact to the modify of name of karta in the HUF’s bank account. You may be essential to get affidavit cum indemnity from surviving members and legal heirs with two guarantors confirming their acceptance to one of the members as a new karta. Thereafter, banks shall permit the new karta to continue to operate the current account. Pertinently, a related process will have to be followed in circumstances exactly where the account is to be closed and balance in the account is to be paid to the new karta.
Further, in order to transmit securities in the account of the new karta, a joint application coupled with a set of prescribed documents really should be filed with the depository participant.
(c) The eldest adult coparcener (head of the family) of an HUF is recognized as the karta. An current karta can’t be replaced by a further member.
Further, there is no prescribed formal process for appointment of the karta in an HUF.
The writer is director, Nangia Andersen India. Send your queries to