HUF Registration
HUF stands for Hindu Undivided Family and it is a great option for individuals for tax planning.
₹ 2,490/-
₹ 2,090/-
HUF Registration
A HUF can be registered in India at an offer price of ₹2,090/- Only (Inclusive of taxes)
HUF stands for Hindu Undivided family & governed by Hindu law board. The expression “Hindu Undivided Family” has not defined under the Income Tax Act or in any other statute. HUF could be formed by a married couple or by members of a joint family. To form a HUF minimum two members are required & at least one among whom should be a male member of the family. Senior most male member of the family would become ‘Karta’.
Although it is governed by the Hindu law board, it can be formed by Jains, Sikhs and Buddhists as well. It is a body consisting of persons lineally descended from a common ancestor and includes their wives and unmarried daughters, who are living together, joint in food, estate and, worship (not now necessary). The daughter, on her marriage, ceases to be a member of her father’s HUF and becomes a member of her husband’s HUF. However, after 1-9-2005, daughter married or unmarried, is a coparcener like a son.
For any query regarding HUF feel free to contact with us at 9141888444 or huf@taxrodo.com
Note Down The Documents Required For HUF Registration
- PAN Card of members
- Aadhaar Card /Driving License/Passport of members
- Birth Certificate (in case of minor and not having PAN or Aadhaar
- Fill HUF Registration Form (https://www.taxrodo.com/huf-registration-form/)
Key Benefits of HUF
- Every member of the family can deposit their income in the common corpus.
- Single person’s authority while participation from the entire family.
- Gifts collected up to a worth of Rs 50,000 will be tax free. A father who owns a HUF account can gift a property or money of higher worth to a son who owns a smaller HUF account, but he should specify that the gift is for the son’s HUF and not to him as an individual. Under section 64(2) and 56(2) tax benefits can be enjoyed in such instance.
- Corpus can be used for investment in tax-free money instruments.
- Corpus can be divided only on agreement of every coparcener of the family.
- The Income Tax Act recognizes the HUF as an independent assessable or taxable entity. Hence, HUFs enjoy all deductions and exemptions under the IT Act independent of the income and tax liabilities of its members. A separate Income Tax Return is filed under Income Tax Act.
- Tax Saving- For example- an ancestral property that yields rental income. Under normal circumstances, the rent will be attached to a person’s income and will be taxed according to that individual’s tax slab. However, if it is transferred to an HUF, the income will be that of the HUF’s and will be taxed separately.
FAQs for HUF Registration
The head of the HUF is called the Karta, which is the senior-most member of the family.
Yes, Until January 2016, a woman could not be the Karta of HUF. But in a landmark case, the Delhi High Court ruled in favour of a female being the Karta of HUF.
TaxRodo provides the virutal services, which means there is no compulsion for you to be present at our office physically. A scanned copy of documents can be uploaded or sent via mail, and we will handle the rest.
We will draft the HUF deed and help you in getting the PAN card for your HUF.
The HUF process will cover the following aspects:
- HUF Deed drafting
- Payment of Stamp Duty
- PAN Application
The complete process takes around 20-25 days.
Sorry, we do not deal with opening a bank account.
No, siblings cannot create the HUF. Only a married person can create the HUF of his family.
Yes, additional members can be added to the HUF through the supplementary deed.
No, you can create the HUF with your family only. You cannot add your parents or siblings as members of the HUF. You can be a part of your father’s HUF but your father or parents cannot be part of your HUF.
No, the deed provided by TaxRodo is not notarized. But the stamp duty will be paid on HUF deed by TaxRodo.
Documents can be shared either through email at huf@taxrodo.com or through whats app at 9141 888 444.
- Step 1 : Share the documents either through email at huf@taxrodo.com or through whats app at 9141 888 444
- Step 2 : TaxRodo will draft the HUF Deed
- Step 3 : Payment of Stamp Duty
- Step 4 : Filing of PAN application
Yes, HUF deed can be updated on payment of the requisite stamp duty.
No, Hindu Undivided Family (HUF) is not recognized in Kerala for legal or tax purposes. In 1975, the Kerala Joint Family System (Abolition) Act came into effect. This law abolished the concept of joint family property and HUF status under Hindu law within the state. As a result, HUFs cannot be formed or claimed for tax benefits in Kerala.
Yes, a Hindu Undivided Family (HUF) can be updated to include new members, such as a child born after its formation. Similarly, the registered address of the HUF can also be changed.
To formalize these updates, a supplementary HUF deed must be executed, clearly stating the inclusion of the new member or the change in address. This ensures legal and tax compliance while maintaining the integrity of the HUF structure.
There is no minimum capital requirement to create an HUF. It can be formed with any nominal amount, even as low as ₹5,000. The key requirement is the intention to form a joint family unit under Hindu law, not the size of the initial capital.
A Hindu Undivided Family (HUF) can accept gifts, but the taxability of those gifts depends on the source and amount.
From Members of the HUF (Relatives):
No monetary limit applies.
Gifts received from members (like the Karta, coparceners, or other relatives) are fully exempt from tax, regardless of the amount.
From Non-Members (Non-Relatives):
Gifts are tax-free up to ₹50,000 in aggregate in a financial year.
If the total value of gifts from non-relatives exceeds ₹50,000, the entire amount becomes taxable under Section 56(2)(x) of the Income Tax Act.
For Property or Other Assets:
If the stamp duty value of immovable property or fair market value of movable property (like gold, shares, etc.) exceeds ₹50,000, it is taxable unless received from a relative.
1. Separate Tax Entity
An HUF is treated as a distinct taxpayer under the Income Tax Act.
It enjoys a separate basic exemption limit and can claim deductions under various sections like 80C, 80D, etc.
2. Efficient Tax Planning
Income from ancestral property, business, or investments can be diverted to the HUF, reducing the individual tax burden of family members.
3. Asset Consolidation
HUF allows for joint ownership and management of family assets, making it easier to manage and grow wealth collectively.
4. Succession Planning
HUF provides a structured way to pass on family wealth across generations, especially through the role of the Karta and coparceners.
5. Gift and Inheritance Benefits
Gifts received from HUF members are not taxable.
Assets inherited by the HUF are exempt from gift tax and can be used for further investment or business.
6. Investment Opportunities
HUFs can invest in real estate, mutual funds, stocks, and other instruments in the name of the HUF, allowing for diversified wealth creation.
1. Limited to Certain Communities
Only Hindus, Jains, Sikhs, and Buddhists can form an HUF.
It is not recognized in states like Kerala, where the joint family system has been legally abolished.
2. Risk of Family Disputes
Since all coparceners have a right in the HUF property, disagreements over management, partition, or inheritance can lead to legal disputes.
3. Irreversible Transfers
Once assets are transferred to the HUF, they cannot be easily reclaimed by the individual.
This can be problematic if family dynamics change.
4. Tax Scrutiny
HUFs are often scrutinized by tax authorities to ensure they are not being used solely for tax evasion.
Proper documentation and compliance are essential.
5. Limited Business Flexibility
The Karta has full control, but other members may not have decision-making power, which can limit agility in business operations.
6. Dissolution Can Be Complex
Dissolving an HUF requires partitioning assets among members, which can be legally and emotionally challenging.
