Question

In a HUF business, the liability of the karta is _______________.

• A. Limited to the extent of share of co-parceners
• B. Limited to the extent as may be determined by relatives
• C. Unlimited
• D. (a) or (b)

Answer 1

The correct option is C Unlimited

In a HUF business, the liability of the karta is unlimited. The affairs of the business are managed by the head of the family, known as karta. In a Hindu Undivided Family business only the male members get a share in the business by virtue of their being part of the family. A Hindu Undivided Family is an extended family arrangement prevalent among Hindus of the Indian subcontinent. It came into existence as per Hindu Inheritance Laws of India.