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Hindu Undivided Family
Own a family business and want to pass on the legacy to next generation? HUF is for you. Form an HUF at INR 3,999/- only.
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What is an HUF?
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 thinkbiz filings as your service provider for your HUF formation?
Thinkbiz filings 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 Thinkbiz filings ! Apart from a HUF, Thinkbiz filings 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 89779 83666 or email info@thinkbizfilings.com for free consultation.
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- Drafting of deed
- PAN
- Drafting of deed
- GST Registration
- PAN Card
- Drafting of deed
- GST Registration
- PAN Card
- 1st Income Tax filing for non audit assessee
Compliance Requirements for a HUF?
Documents Required for Hindu Undivided Family (HUF)
Benefits of Forming a Hindu Undivided Family (HUF)
Points to make your decision easy
Our most honorable clients
- A Hindu Undivided Family (HUF) is a unique legal entity under Hindu law where members of a common family (descendants of a common ancestor) own and manage assets jointly.
- HUF can be formed by Hindus, Buddhists, Jains, and Sikhs under Hindu law. It consists of: Karta – The head of the family (usually the eldest male). Coparceners – Male and female members with birthrights in HUF property. Members – Other family members who benefit from HUF income.
- Tax benefits – HUF gets a separate PAN and can file taxes separately from individual members. Wealth accumulation – Helps in managing ancestral property. Legal recognition – Considered a distinct entity under the Income Tax Act
- Yes, after the 2016 Supreme Court ruling, a female can be the Karta of an HUF if she is the eldest member.
- HUF is a family-based entity, while a partnership firm is a contractual agreement between partners. HUF members are related by birth, whereas partners enter into a voluntary business arrangement.
- Steps to create an HUF: Have a common ancestor and family members. Create an HUF Deed stating the name and members of the HUF. Open an HUF bank account with a PAN card. Apply for a PAN card specifically for the HUF entity.
- HUF Deed (on stamp paper) Karta’s PAN card and Aadhaar Declaration from family members Proof of ancestral property or gifts received by HUF
- Yes, an HUF can be dissolved by partitioning the assets among its members. The dissolution must be legally documented.
- Yes, HUF can own ancestral properties, acquired assets, or gifted properties that belong to the family collectively.
- Yes, an HUF can invest in stocks, mutual funds, fixed deposits, and other financial instruments in its name.
- Don’t worry!! Our expert will help you to choose the best suitable plan for you. Get in touch with our team to get all your queries resolved. Write to us at info@thinkbizfiling.com or call us @+91 89779 83666
