Hindu Undivided Family

πŸ‘¨β€πŸ‘©β€πŸ‘¦β€πŸ‘¦ HUF Registration in India – A Smart Way to Save Tax as a Family Unit

Looking to manage your family assets, ancestral property, or business under a single legal entity?
Hindu Undivided Family (HUF) is a unique structure under Indian law that allows a family to be treated as a separate tax entity, helping you manage wealth efficiently and enjoy exclusive tax benefits.

Let us help you register your HUF and optimize your family’s income and assets.

βœ… What is an HUF?

A Hindu Undivided Family (HUF) is a separate legal entity under Hindu Law. It consists of a common ancestor and all his male lineal descendants (including daughters after the 2005 amendment) who live together and hold joint family assets.

πŸ’‘ Why Register an HUF?

  • πŸ’° Tax Saving – HUF gets its own PAN and tax slab, separate from individual members
  • 🏠 Asset Management – Manage ancestral property or business income collectively
  • πŸ‘¨β€πŸ‘©β€πŸ‘§β€πŸ‘¦ Family-Owned Business Structure – Profits can be taxed in HUF’s hands, not individuals'
  • 🧾 Separate Legal Identity – File separate income tax returns for HUF

πŸ‘€ Who Can Create an HUF?

  • Must be a Hindu, Sikh, Jain, or Buddhist family
  • Consists of at least two members (e.g., husband and wife)
  • The eldest male or female becomes the Karta (head of the family)
  • Can be created automatically upon marriage, but formal registration is needed for tax purposes

πŸ› οΈ Steps to Register an HUF

Step
Description
Create a Deed
Draft an HUF deed stating its formation, members, and Karta
Apply for PAN
Get a separate PAN card in the name of the HUF
Open Bank Account
Open a current account in the name of the HUF
Use for Transactions
Income from assets, business, rent, etc., can be routed through the HUF
File Returns
HUF must file separate ITR annually if it earns income

πŸ“‘ Documents Required

  • HUF Deed (on stamp paper)
  • Declaration by Karta and co-parceners
  • PAN & Aadhaar of Karta and members
  • Passport-size photos
  • Proof of address and identity for Karta
  • Utility bill/rent agreement for office or business (if any)

βš–οΈ What Can an HUF Own or Do?

  • Ancestral property
  • Family-run business income
  • Rental income from family-owned assets
  • Investments made in the name of HUF
  • Purchase assets in HUF's name

🚫 Important Things to Know

  • Only one HUF per family
  • Cannot be formed by contractβ€”must be a Hindu family unit
  • Cannot have non-Hindu members
  • HUF dissolves when all members agree or via partition

πŸš€ Want to Save Tax and Manage Family Wealth Smartly? Register Your HUF Today!

We’ll help you draft your deed, get PAN, and open a bank account under HUFβ€”legally and seamlessly.