Quick Checklist
- PAN Card of all the Partners
- Self-Attested ID Proof of all Partners (Driving License/Passport/Voter ID)
- Electricity Bill or any other utility bill for the address proof of the Registered Office
Hindu Undivided Family (HUF), HUF Deed
All you need to know
What is HUF?
The term HUF stands for ‘Hindu Undivided Family’ and comprises of all descendants of a common male ancestor and includes their wives and unmarried daughters. The term of HUF is not defined in income tax law; it is defined under the Hindu Law as a family.
The family continues to exist even after the death of the common ancestor and the next eldest male member becomes the head of the family or the “Karta”. In financial terms, we can call him ‘manager of the family’. Even on the death of all the male members, the HUF continues to exist.
The term ‘Hindu Undivided Family’ (HUF) is defined under Hindu Law. so it can’t be created by an agreement between two parties, nor can it be formed by a group of people who do not constitute the family. Buddhists, Jains, and Sikhs can also form HUF.
Conditions to be fulfilled to create an HUF:
- HUF should only be formed by a family.
- HUF is automatically created for newly added member of the family at the time of their marriage.
- HUF in general consists of a common anscentor and all of his descentors including their dughters and wives,
- Buddhists, Jains, Hindus and sikhs are able to form HUF.
- HUF often has assets which come as will, gift or ancentral property,
- Once the HUF is created, the bank account should be created in the name of the HUF. A PAN number will be generated in the name of HUF.
Why to choose CA Agrawal Kanhere as your service provider for your HUF formation?
info@caagrawalkanhere.com is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Incorporating a HUF is easy, seamless, cheapest and quickest with info@caagrawalkanhere.com! Apart from a HUF, info@caagrawalkanhere.com also helps entrepreneurs with Private Limited Company Registration, Public Limited Company Registration, LLP Registration, Partnership Firm, One Person Company and Proprietorship Firm Registration easily. You may get in touch with our compliance manager on 07552761432 or email info@caagrawalkanhere.com for free query.
Why you should form an HUF?
Points to make your decision easy
Separate Legal Entity
One of the major benefits of the Hindu Undivided Family is that it is considered a separate legal entity. This entitles HUF to obtain a separate PAN card and bank accounts in the name of the HUF.
Tax-Free Gift
monetary gift up to INR 50000 may be received in cash, cheque, draft, etc by an individual/ HUF is free from income tax. Also, a gift by Karta to his daughter on her marriage is expmted from taxation.
HUF Deed
HUF is very easy to form. It comes into existence merely by a HUF Deed. It is a formal legal document on a stamp paper which clearly states the names of the ‘Karta’ and the co-parceners (other members)
Tax Savings
By creating an HUF, you get an additional PAN Card which would be legally acceptable as well as to avail the tax benefits. As the new PAN CARD in the name of an HUF is created, the family can pay its tax individually.
Equal Rights
Each member has an equal right to the property owned by an HUF. New members that get added to the family by way of birth or marriage also have an equal share in the property. An even unborn child in the womb of the mother will have equal rights.
Inheritance
Inheritance can be accepted in Hindu Undivided Family’s name. The legal heir would have a vested interest in the legacy after the death of the person who made the Will, his children are also considered legal heirs to the property so inherited.
Documents Required for Hindu Undivided Family (HUF)
How to form an HUF?
5 Easy Steps
1
Complete a Simple Checklist
2
Drafting of HUF deed
3
Verification of Documents
4
Drafting & Executing HUF Deed
5
Obtain PAN & TAN
Fill Simple Checklist
A Compliance Manager will get in touch with you to obtain your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for processing. All throughout the process, your dedicated Compliance Manager will keep you updated on the progress of your HUF Registration.
HUF Deed
Upon receipt of your documents our team will verify the documents. After verifying the documents, our team will draft a comprehensive HUF deed for your Hindu Undivided Family. A HUF deed contains very important details of address, Karta, members etc. HUF deed will be sent to you for your verification. Once you verify, we will get the same executed.
HUF Incorporated
Upon payment of stamp duty and notarizing the HUF deed, your Hindu Undivided Family is incorporated. Once this is done, we will proceed to apply PAN and TAN for your HUF. On receipt of PAN, you may proceed to open your HUF’s current bank account in which the HUF will receive its payments with a bank of your choice.
FAQs On Hindu Undivided Family (HUF), HUF Deed
Get answers to all your queries
Birth of a son in a Hindu joint family automatically makes him a member of the HUF. In view of this, all male members and unmarried daughters automatically become members of the HUF. In addition to that, if a child is adopted, then he also becomes a member of the HUF. Moreover, upon marriage, a wife becomes a member of her husband’s joint family.
No HUF arises only from status.
Yes. A family consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters.
It is the property, which a man inherits from any of his three immediate male ancestors, i.e., father, grandfather, and great-grandfather.
Yes. As so long as the property which was originally of the joint Hindu family remains in the hands of the widows of the member of the family and is not divided, HUF can continue with female members.
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Muskaan Sharma
CA Agrawal Kanhere team members are very helpful in the entire process of GST filing. I really appreciate their support superb team.
