Hindu Undivided Family (HUF)

What is an Hindu Undivided Family?

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 NetProfit as your service provider for your HUF formation?

EbizFiling.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 NetProfit.com.

Apart from a HUF, NetProfit 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 or email contact@netprofit.in for free consultation.

Simple Prices No Surprises

• Drafting of deed
• PAN
• Drafting of deed
• GST Registration
• PAN
• Drafting of deed
• GST Registration
• PAN
• 1st Income Tax filing for non audit assessee

Why you should form an HUF?

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 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)

Quick Checklist

• PAN Card
• ID Proof (Driving License/Passport/Voter ID)
• Electricity Bill or any other utility bill for the address proof

Complete a Simple Checklist

Drafting of HUF deed

Verification of Documents

Drafting & Executing HUF Deed

Obtain PAN & TAN

How NetProfit Helps in HUF Registration?

• We explain the concept of HUF registration and confirm whether your family is eligible to form a Hindu Undivided Family.
• We guide you in preparing the HUF deed, clearly defining the Karta and members of the HUF.
• We help collect and verify the required documents of the Karta and coparceners.
• We assist in applying for a PAN card in the name of the HUF, which is essential for tax purposes.
• We guide you in opening a bank account in the name of the HUF after PAN allotment.
• We review the documentation to ensure the registration process is accurate and legally compliant.
• We explain how assets or capital can be transferred to the HUF corpus.
• We guide you on tax benefits available to HUFs under the Income Tax Act.
• We assist with the initial setup of HUF records and documentation.
• We provide support until your HUF registration and basic tax setup are completed.

Frequently Asked Questions On HUF

How can a HUF be created? Who can be members of a HUF?

• 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.

Does HUF arise from a contract?

• No HUF arises only from status.

Does HUF include the wives and daughters of the above-said persons?

• Yes. A family consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters.

What is ancestral property?

• It is the property, which a man inherits from any of his three immediate male ancestors, i.e., father, grandfather, and great-grandfather.

Can there be HUF with only female members?

• 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.

Can Karta gift HUF property?

• Gift by Karta of HUF, a movable property or an immovable property within reasonable limits in favor of his daughter is permissible on the occasion of her marriage.

Who can claim a share in the partition?

• All members;
• A son in the womb of his mother at the time of partition;
• Mother;
• Wife.

Whether a single person can constitute HUF?

• No. A single person cannot constitute HUF. There have to be minimum two members to constitute a HUF.

Which Cities do you provide your services?

• NetProfit.com provides HUF all across India. You can obtain HUF in Ahmedabad, Mumbai, Pune, Bangalore, Chennai, Delhi, Kolkata, Kanpur, Nagpur, Jaipur or any other cities easily with us.

Still, have confusion?

• Don’t worry!! Our expert will help you to choose a best suitable plan for you. Get in touch with our team to get all your queries resolved. Write us at contact@netprofit.in.

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.

Gift by Karta of HUF, a movable property or an immovable property within reasonable limits in favor of his daughter is permissible on the occasion of her marriage.

All members; A son in the womb of his mother at the time of partition; Mother; Wife.

No. A single person cannot constitute HUF. There have to be minimum two members to constitute a HUF.

NetProfit.com provides HUF all across India. You can obtain HUF in Ahmedabad, Mumbai, Pune, Bangalore, Chennai, Delhi, Kolkata, Kanpur, Nagpur, Jaipur or any other cities easily with us.

Don’t worry!! Our expert will help you to choose a best suitable plan for you. Get in touch with our team to get all your queries resolved. Write us at contact@netprofit.in.