HUF stands for Hindu Undivided Family. Recognized under Hindu law, an HUF constitutes a legal entity formed by a family connected through common ancestry and shared living arrangements. In the context of Indian taxation, the Income Tax Act recognizes HUF as an independent taxable entity with a designated PAN (Permanent Account Number) for tax-related matters.

A Hindu Undivided Family is automatically formed when a person gets married and starts a family. Thus, there is no requirement that the family should have children; when a marriage happens, an HUF comes into existence. An HUF is a separate legal entity managed and operated by the Karta, who is the eldest member of the family. Karta holds the rights of transaction of assets of HUF.

Small family businesses, investment businesses, shares trading, or IPOs are common business interests that lead to the formation of an HUF through an HUF Deed. Contact us for HUF Formation Consultant & (HUF) registration process across India.

Documents required for HUF formation

• Aadhar Card of All Family Members
• PAN Card of All Family Member except minor
• Photo of member
• Date of Birth of Child OR Marriage Date
• Mobile Number and Email of Karta

Benefits of Hindu Undivided Family - HUF Registration

• Tax Saving Option – HUF is a separate legal entity with a distinct threshold limit of Rs. 250,000, which aids in tax savings.
• Equal Member Rights – Members have equal rights to the assets of the HUF.
• In today’s scenario, the craze for IPOs has increased, so HUF can submit a separate IPO or SME IPO application

Criteria for Registering a HUF (Firm)

Only the following conditions must be met for the formation of an HUF:

• The family’s caste must be Hindu, Buddhist, Jain, or Sikh.
• The person must be married OR have children (Either condition must be satisfied).
• There must be assets in the name of the family.