CREATION OF HUF AND FORMAT OF DEED FOR CREATION OF HUF

KEY POINTS IN CREATION OF HUF AND FORMAT OF DEED FOR CREATION OF HUF

  • Under the Income Tax Act, an HUF is a separate entity for the purpose of income tax return.
  • The same tax slabs are applicable to HUF as to individual assessee.
  • You can not transfer your own assets/money into HUF.
  • If you have ancestral property and earning some income from this property, then it is better to transfer this asset to HUF and save tax up to exemption limit applicable to individual.
  • You can transfer the money received on sale of ancestral property /assets into your HUF.
  • The income from property of HUF can be further invested in instruments such as shares, mutual funds, etc. and will be assessed under HUF.
  • Existence of property or multiple members is not a pre-requisite to create HUF. A family which does not own any property may still have the character of Hindu joint family. This jointness is understood in terms of faith and food. This is because as a Hindu is born as a member of the joint family.
  •  Any gifts received by the members of HUF (birthday, marriage, etc.) can be treated as assets of HUF.
  •  The HUF is taxable as separate person under income tax hence one can save tax from basic exemption of Rs. 1.8 lakh. HUF will also gain from the tax slab structure of computing income tax.
  • Apart from basic exemption of Rs. 1.5 lakh, section 80C deduction up to Rs.1 lakh is also available.
  • For example, if you are in 30% tax bracket, then approx tax saving by creating an HUF will be as follows:
    •   Basic exemption up to Rs. 1,80,000 = nil
    •  Rs. 1,80,000-5,00,000 @10% = Rs. 32,000
    •  Rs. 5,00,000-10,00,000 @20% = Rs. 50,000
    • 80C deductions Rs. 1,00,000
  • Therefore total tax payable for HUF on income of Rs. 6,00,000 is only Rs. 32,000.
  • If this income of Rs. 6,00,000 is taxed in individual hand @ 30% tax due is Rs. 1,80,000.
  • Hence, you can save a total of Rs. 1,48,000 by creating an HUF and transferring ancestral property income and other income under HUF.

www.mukeshraj.com

FORMAT OF HUF CREATION DEEDS FORMAT-I

DECLARATION

I, ________________ son Of __________________ Residing at ______________________ aged ___Adult do hereby declare-

1. That I am Karta of ___________________________________________ .

2.That I received on behalf of the H U F gift of Rs. ___________ by way of CASH/CHEAUE from my FATHER ___________________________(name of relative of karta of HUF) on dt. _______________ this formed the corpus of the HUF.

3. That the HUF at present is consisting of the followings members- I) Shri _____________________, Adult, Residing at _________________ II) Smt. _____________________, Adult, Residing at _________________ III) Kumari _________________-Minor, Residing at ___________________

4. That the above statements are true to the best of my knowledge & belief. Declare this on _________________

WITNESS: Signature 1. ————————————–

——————————— 2. ————————————– (_____________________)

 

FORMAT- II

[To be executed on Rs. 100 Stamp Paper in Maharashtra] DECLARATION OF

GIFT MADE BY ________________________ TO THE HINDU UNDIVIDED FAMILY OF ___________________ I,_____________________________, residing  at_________________________________________________, do hereby declare and affirm as under:

1. That out of natural love and affection borne by me towards the Hindu Undivided Family of_______________, I have made a gift of Rs.______ (Rupees _________________ only) as per the following details: By Cheque No.________, dated __________, drawn on Bank ____________________, ________________ Branch, in favour of ________________________ HUF.

2. The above Gift has been duly accepted by ________________________, as Karta of his Hindu Undivided Family and has been duly acknowledged hereunder.

3. This Declaration of Gift is made to record the fact that I have made this Gift in favour of the Donee as above, who now has the absolute right, title and interest in the gifted amount. Date: ___________, 200__

 

___________________ (Signature of the Donor)

 

ACKNOWLEDGEMENT OF GIFT I, ________________________, hereby acknowledge having received the above gift made to my Hindu Undivided Family by _________________________. Date: ___________, 200__

 

___________________ (Signature of the Donee as Karta of his HUF) •

  • CA. Rakesh Gupta

    Sir,
    This detailed topic on HUF gave me great knowledge on creation of HUF. I m practicing CA here in jammu.

  • CA. Rakesh Gupta

    Sir,
    This detailed topic on HUF gave me great knowledge on creation of HUF. I m practicing CA here in jammu.

  • kishoree

    sir
    this is grateful ifo………….

    thanks

    • Tangent_legal

      HUFs can not be created. They get created with the happening of certain events like (i) birth of a son (in some states even daughters) or (ii) Receipt by a group of family members of some ancestral property jointly and they treating the same as  a HUF property etc. You can not create a HUF by execution of a document like a partnership by execution of a Partnership Deed.

      Yes, you can depose to the facts leading to the creation of or commencement of a HUF. 

  • kishoree

    sir
    this is grateful ifo………….

    thanks

  • Siddharth Kapoor

    Dear Mukesh,

    Thanks for sharing this. I was looking for the HUF deed draft for some time and this is definitely very useful

    I have read a number of articles around the benefits of setting up a private discretionary trust if the beneficiaries are minors. In such a case too, the trust is treated as a separate tax identity and one can avail of the Rs. 1.5 lakh basic exemption etc. But the difference compared to HUF is that you can transfer your own assets/money into the trust which would not be allowed in the case of an HUF. But there are some questions which remain open for which I am not able to get answers. Specifically
    1. Is it possible to set up a private discretionary trust if there is only one minor beneficiary? Logically, it doesnt seem possible as there wouldnt be any ‘discretion’ in the way the benefits are distributed as there is only one beneficiary. But I still want to check.
    2. Is it possible to set up a private discretionary trust with one minor and one unborn child as beneficiaries?
    3. If answer to Q2 above is Yes, then suppose the unborn child does not exist at the point of dissolution of the trust, how do we get affected from taxation point of view.

    I spoke to a few CAs but no one could give me any concrete information about the same. I was wondering if you have any information on the same and could help me?

    Thanks,
    Siddharth

    • Ravi Chandar

      This is my comments w.r.t Siddharth’s question on Pvt. Trust vis-a-Vee HUF.
      1) You can set up a Prive “Specific’ trust when there is only one ‘identified’ (minor) beneficiary.
      Please note, Pvt. Discrition Trust attracts Maximum Applicable IT slab rate.

    • CA GOUTAM BAID

      Benefit of exemption of Rs. 1.6 Lac will be available only if the private trust is specified benefeciary with specific rigth in the property of the trust in monetory or % terms. Private discreationery trust will be taxed at MMR which is 30% now.

      CA GOUTAM BAID
      Jodhpur

  • Siddharth Kapoor

    Dear Mukesh,

    Thanks for sharing this. I was looking for the HUF deed draft for some time and this is definitely very useful

    I have read a number of articles around the benefits of setting up a private discretionary trust if the beneficiaries are minors. In such a case too, the trust is treated as a separate tax identity and one can avail of the Rs. 1.5 lakh basic exemption etc. But the difference compared to HUF is that you can transfer your own assets/money into the trust which would not be allowed in the case of an HUF. But there are some questions which remain open for which I am not able to get answers. Specifically
    1. Is it possible to set up a private discretionary trust if there is only one minor beneficiary? Logically, it doesnt seem possible as there wouldnt be any ‘discretion’ in the way the benefits are distributed as there is only one beneficiary. But I still want to check.
    2. Is it possible to set up a private discretionary trust with one minor and one unborn child as beneficiaries?
    3. If answer to Q2 above is Yes, then suppose the unborn child does not exist at the point of dissolution of the trust, how do we get affected from taxation point of view.

    I spoke to a few CAs but no one could give me any concrete information about the same. I was wondering if you have any information on the same and could help me?

    Thanks,
    Siddharth

    • Ravi Chandar

      This is my comments w.r.t Siddharth’s question on Pvt. Trust vis-a-Vee HUF.
      1) You can set up a Prive “Specific’ trust when there is only one ‘identified’ (minor) beneficiary.
      Please note, Pvt. Discrition Trust attracts Maximum Applicable IT slab rate.

  • K.Gopalakrishnan

    It is good and handy to explain some body about HUF and declaration. Thanks a lot.

  • K.Gopalakrishnan

    It is good and handy to explain some body about HUF and declaration. Thanks a lot.

  • rakesh bhatt

    can a ladies member after death of male can create new huf

  • rakesh bhatt

    can a ladies member after death of male can create new huf

  • v. k. jain

    mukesh, hi information on your site is useful but some questions are there..
    1.who can gift money/others to huf and how much for no tax
    2 a person having PAN NO and relative of KARTA but younger ,Can gift how much
    money if he is not the member of huf

  • v. k. jain

    mukesh, hi information on your site is useful but some questions are there..
    1.who can gift money/others to huf and how much for no tax
    2 a person having PAN NO and relative of KARTA but younger ,Can gift how much
    money if he is not the member of huf

  • CA.Kunjar Shah

    Sir, information is very useful but there are still some question in my mind. Hope I get answer of this.
    1. Can Karta of HUF give gift to his HUF at inception of creating HUF? If no, how to get opening capital in HUF?

  • CA.Kunjar Shah

    Sir, information is very useful but there are still some question in my mind. Hope I get answer of this.
    1. Can Karta of HUF give gift to his HUF at inception of creating HUF? If no, how to get opening capital in HUF?

  • Rakesh Kumar Dixit

    How we can open a HUF account

    • http://www.mukeshraj.com/ mukeshrajco

      First you apply PAN card of the HUF and then open a savings account with any bank. HUF can be created with full partition of the biger HUF or to create a corpus of the HUF you can take gift from your relatives. A format of the gift deed is given on our blog.

      • Mohittyagidel

        CAN WE OPEN A HUF UNDER VIRAT ENGINEERS NAME

        • Anonymous

          Earlier there is no restriction as such for name of HUF as such, but now
          you can not get income tax PAN , if you name other than karta’s name so
          you should name your HUF as “Mohit Tyagi HUF”

          Mukesh

          • Anaxbio

             Sir,

            I understand that the definition of  Relative has been changed to include HUF, would that mean I can transfer my money as Gift to HUF without any income tax implications??

  • Rakesh Kumar Dixit

    How we can open a HUF account

    • http://www.mukeshraj.com/ mukeshrajco

      First you apply PAN card of the HUF and then open a savings account with any bank. HUF can be created with full partition of the biger HUF or to create a corpus of the HUF you can take gift from your relatives. A format of the gift deed is given on our blog.

  • Avinash Bhoyar

    I got crushial information for creation of HUF, I am begineers in this field of profession, satisfied with the information.

    I also need information about how to manage the HUF according to tax planning in this present day scenario.

    • http://www.mukeshraj.com/ mukeshrajco

      Service class can divert his other sources income and income from shares to the HUF account. Business class can use HUF fund as borrowed fund and save tax by paying interest. If you owned immovable property in the name of HUF then you can save tax on rental income also.

  • Avinash Bhoyar

    I got crushial information for creation of HUF, I am begineers in this field of profession, satisfied with the information.

    I also need information about how to manage the HUF according to tax planning in this present day scenario.

    • http://www.mukeshraj.com/ mukeshrajco

      Service class can divert his other sources income and income from shares to the HUF account. Business class can use HUF fund as borrowed fund and save tax by paying interest. If you owned immovable property in the name of HUF then you can save tax on rental income also.

  • KULDEEP RATHEE

    sir
    this is very useful information.
    thanks

  • KULDEEP RATHEE

    sir
    this is very useful information.
    thanks

  • vinod katare

    realy excellent information

  • vinod katare

    realy excellent information

  • vinod katare

    my father has 10 acre ancestor agriculture land and earning 2 lacs per yearfrom it.he is getting 7000 pension also and not paying tax as individual. now atage of 75 he wants to open huf. at present he is getting 3 lacs annual intrest income from earned agriculture income.he has landed rs 15 lacs on loan to public without cheques.how can this 15 lacs amt and 60 tola gold can be shown in huf pls reply

  • vinod katare

    my father has 10 acre ancestor agriculture land and earning 2 lacs per yearfrom it.he is getting 7000 pension also and not paying tax as individual. now atage of 75 he wants to open huf. at present he is getting 3 lacs annual intrest income from earned agriculture income.he has landed rs 15 lacs on loan to public without cheques.how can this 15 lacs amt and 60 tola gold can be shown in huf pls reply

  • BELA SRIVASTAVA

    The topic is very interesting.
    The first time I have come to know about the huf deed.
    I am also a member of huf.
    Recently, Our firm is facing some legal challange. huf has raised a commission bill to a firm where the member of huf is also partner of one firm. Is the transaction not legal? The karta cant raise a bill to a firm?

  • BELA SRIVASTAVA

    I like the information provided in the site. they are educative.

  • BELA SRIVASTAVA

    I like the information provided in the site. they are educative.

  • jay shanker gupta

    i am unmarried son, can i with my widow mother form an huf. if yes, kindly mail me the format of creation of huf if possible

    regards

    jsg

  • VISHWANATH SHELKE

    its important information for me to forming HUF & opening account in the name of huf.
    thanks & regds,
    vdshelke

  • VISHWANATH SHELKE

    its important information for me to forming HUF & opening account in the name of huf.
    thanks & regds,
    vdshelke

  • OM PRAKASH SINGH

    it is very important information for the created of new HUF account but how to get opening capital in HUF Account ? ……………………………….

  • OM PRAKASH SINGH

    it is very important information for the created of new HUF account but how to get opening capital in HUF Account ? ……………………………….

  • SMITA KELKAR

    I WANT TO KNOW WHETHER SURAJMAL HUF CAN BE A PROPRIETOR OF SHREEJEE TEXILES. IF YES HOW THE STAMP SHOULD BE FOR OPENING A CURRENT ACCOUNT IN A BANK.

    • http://www.mukeshraj.com/ mukeshrajco

      You can use stamp as

      FOR SHREEJEE TEXTILE

      Proprietor
      Through Karta of Surjamal HUF

  • SMITA KELKAR

    I WANT TO KNOW WHETHER SURAJMAL HUF CAN BE A PROPRIETOR OF SHREEJEE TEXILES. IF YES HOW THE STAMP SHOULD BE FOR OPENING A CURRENT ACCOUNT IN A BANK.

    • http://www.mukeshraj.com/ mukeshrajco

      You can use stamp as

      FOR SHREEJEE TEXTILE

      Proprietor
      Through Karta of Surjamal HUF

  • Sajjan Jain

    Hi Sir,
    I want to know the format of HUF deed for opening an Demat account in the name of karta.
    Thnks

  • LALIT SHAH

    i want to create my huf , in my family my wife son marride daughter marride please kindly inform me whose name should be writtern in deed reply immideatly
    lalit shah

  • Ashoka.A.K.

    Sir,

    Please clarify, in a situation where one person having a own HUFconsisting of his children also becomes of Karta of HUF created by his father on the demise of his father by virtue of being the eldest surviving male member of HUF created by his father.

    NSDL guide lines stipulates that on death of Karta , d- mat account has to be closed and all the stocks standing in the name of deceased are to be transferred to a new account which is to be opened in the name of new Karta of HUF. In this situation one person will be karta for two HUF’s having same name and style, but I T laws prohobits ONE name having two different PAN.

    Your early clarifcation will be very much appreciated.

    Thanking you.

  • Aditya

    Sir,

    Please clarify whether property that my father inherits from his father [my grandfather] becomes property of HUF.

    Thanking you.

  • Aditya

    Sir,

    Please clarify whether property that my father inherits from his father [my grandfather] becomes property of HUF.

    Thanking you.

  • Dr. Bharath Bhushan A.K.

    Sir,

    Please clarify, in a situation where one person having a own HUFconsisting of his children also becomes of Karta of HUF created by his father on the demise of his father by virtue of being the eldest surviving male member of HUF created by his father.

    NSDL guide lines stipulates that on death of Karta , d- mat account has to be closed and all the stocks standing in the name of deceased are to be transferred to a new account which is to be opened in the name of new Karta of HUF. In this situation one person will be karta for two HUF’s having same name and style, but I T laws prohobits ONE name having two different PAN.

    Your early clarifcation will be very much appreciated.

    Thanking you.

  • anal h modi

    What is the minimum gift to receive to form an huf and for the DECLARATION form. Second question who can gift the said ammount.

  • PAWAN KUMAR

    IS THERE ANY SITE FOR VIEWING THE REGISTERED PARTNESHIP FIRMS IN INDIA BECAUSE I AM GOING TO MAKE A PARTNERSHIP FIRM WITH A PARTICULAR NAME WHICH WILL BE REGISTERED WITH REGISTRAR OF FIRMS. PLEASE LET ME KNOW THE SITE SO THAT I CAN WRITE PARTNERSHIP DEED WITH THAT PARTICULAR NAME

  • PRASHANT

    HI I LIKE YOUR ARTICLE I AMI CA STUDENT

  • PRASHANT

    HI I LIKE YOUR ARTICLE I AMI CA STUDENT

  • Janvi

    I want to know whether the wife of the son (daughter in law) can also be member of father in Law HUF or not ?

  • http://na SANJAI JAISWAL

    i am practising as tax and accounts consultants and its a great material to advice my clients and serve them more better. excellent……

  • Pragnesh patel

    Sir,i am government servant my incom is 350000 RS. through salary & other income aprox 130000 RS. Through insurance & mutual fund commision i divert commision income through HUF ? From salary income?

  • Nidhi

    Hi

    This is real valuable information.I will be greatful if You can elaborate where this HUF deed format I needs to be submitted or notified ,is there some fees to paid while creating it & mention all the formalities to be completed.

    • http://www.mukeshraj.com/ mukeshrajco

      You need not to submit anywhere this HUF deed. This is just for evidence for creation of HUF or corpus of the HUF required for income tax purposes. So keep this document for income tax purposes.

      • Keertiraj

        HUF deed in Format-1 – Is it to be on a stamp paper or plain paper? If stamp paper, what value?
        Can you please clarify this point.

        Ramesh Babu

  • Nidhi

    Hi

    This is real valuable information.I will be greatful if You can elaborate where this HUF deed format I needs to be submitted or notified ,is there some fees to paid while creating it & mention all the formalities to be completed.

    • http://www.mukeshraj.com/ mukeshrajco

      You need not to submit anywhere this HUF deed. This is just for evidence for creation of HUF or corpus of the HUF required for income tax purposes. So keep this document for income tax purposes.

  • Shashank Ingle

    Thanks sir for such useful info

  • Shashank Ingle

    Thanks sir for such useful info

  • ROHIT GARG

    Sir, I need a deed of partion of father’s HUF by which creating new HUFs of sons. How we can draft full partion at the same time cration of son’s HUFs.
    Regards!

  • vaithy

    Dear Sir,
    Thanks for your valuable information on HUF. I am a NRI & would like to invest (partly in equity shares and partly in interest bearing loan) in my friend’s private limited company. I have 2 minor daughters and a wife. is it advisable to create a HUF and invest through it ??.
    if yes, please let me know
    1.) naming of HUF – is it necessary to be in Karta’s name or I can decide on any name.
    2.)Apply for PAN – As no registration required for formation of HUF, how do i apply for PAN card
    3.) Is it necessary to receive some money from my father to show the corpus/Seed Capital.
    4.) Can the Karta transfer properties in his name to HUF later ??
    5.) Is it possible to specify sharing ratio of HUF income and capital between the members of HUF in the HUF deed?

    Thanks in advance for your kind help.

  • hemant gagwani

    Sir,
    We r two brothers and three sisters who have inherited an ancestral property. The property was given for development and the sisters shares duly given in cash. the two brothers received o0ne flat each in lieu of the development agreement and cash consideration. The developer has breached certain conditions, like installation of telephone towers, selling of parking spaces, and not giving rent. Since my brother is not interested in pursuing the above matter , will my interests be harmed if he signs the conveyance as the karta of the HUF. Possession of the bldng is given with full O.C and society formed but first meeting still not held. There is no HUF deed done and no HUF account. How should I proceed. The D.A mentions the exixtence of HUF property duly signed by me. How should i proceed.

  • Samir Kumar

    Dear Sir: Would you help me understand if an apartment in my name can be transferred to HUF in which I am the karta and then the HUF can take the rental income which I can provide to HUF? Appreciate your help.

    • http://www.mukeshraj.com/ mukeshrajco

      If you convert your property into HUF property then as per section 64 of the Income tax Act, income from that property will be clubbed in your income as an individual. So you will get any benefit from that directly. But any income on the income will the income of the HUF, means if deposit this rent in fixed deposit with bank then interest received on such deposit will be the income of HUF

  • Samir Kumar

    Dear Sir: Would you help me understand if an apartment in my name can be transferred to HUF in which I am the karta and then the HUF can take the rental income which I can provide to HUF? Appreciate your help.

    • http://www.mukeshraj.com/ mukeshrajco

      If you convert your property into HUF property then as per section 64 of the Income tax Act, income from that property will be clubbed in your income as an individual. So you will get any benefit from that directly. But any income on the income will the income of the HUF, means if deposit this rent in fixed deposit with bank then interest received on such deposit will be the income of HUF

  • Prem

    Sir,

    Can a HUF be created and started after death of the wife of the karta. Originally there were 3 members in the family i.e. Karta, Wife of Karta & Daughter, however at that point of time HUF was not created. Now the wife of karta has deceased and there are only two people in the family i.e. Father & daughter, can father now create HUF ?

  • Anonymous

    HUF exists by nature as soon there is a karta and a coparcener in the family. So you can create HUF even the wife of the karta died.

  • sanjay Raghunath

    what we creat a huf firm if i lived in ahmedabad(Gujarat),my big brother live in Gandhidham(Gandhidham and my father live in Ballia(U.P.)

  • Rohit Brahmbhatt

    I am insurance surveyor and I am facing problem for claim settlement for a common amenities comound wall under HUF. From your FAQs I came to know that HUF deed is made for to get Incometax benifit. Now my question is that when the Eight family members are staying in the Farm having their eight seperate bunglows, constrained each with separate boundry wall. But when there is a claim of a compound wall of common amenities,common for all.Than how can we assure that this damaged compound wall belongs to HUF, when all the eight bunglows are paying separate municipal tax bill?

  • Pratik2604

    can ccccccc

  • Ad Chirag_raval

    when HUF Karta sold the HUF property at that time HUF member’s declaration is required for the new owner?

    • Anonymous

      Legally Karta has power to dispose of any the asset of the HUF, but any
      member can create a dispute, so avoid the risk, it is better for buyer
      to have consents of all members.

  • nitaj1973

    Do I need to execute the deed on a stamp paper? What value?

    • Anonymous

      Yes, you have to execute the deed on stamp paper. Value of stamp paper may vary from state to state.

  • nitaj1973

    Hi,

    I already have a HUF, pan card and an account but never got the deed. Can i still get the deed done? Do i need to get the deed?
    * Do I need to get it done on Stamp Paper or on a plain paper as shown in the format. Please advise me how to execute it ?
    * I dont live in Maharashtra, do i still need to get the DECLARATION OF GIFT MADE?
    The ammount was gifted two years back.

    Please advise

  • Gogate Rajiv

    After a long hunt i actually got to see a draft “deed”.
    Could you pl inform me if this deed is to be made on stamp paper & if so, of what value?

  • Sadhu Manoj

    Please inform me I individual can give gift to My HUF.

  • Yashwinderraghu

    Our ancestral agricultural land was acquirede by the LAO for capital project. The land in questioin was in the name of our father because the all the sons and daughters at that time i.e. 1995 were minor.  Now all the sons and daughters are married and having further sons and daughters and living seperately maintaining our kitchen and other requirements at their own ( i.e. their own smaller HUF ) The initial  Compensatgion thus received was challenged at different courts for enhancement. Lastly this year i.e. 2010-11  the High Court has enhanced the compensation and also allowed ineest 9%,12% and 15% etc.  The LAO took whole of the amount of compensation in the hands of our father and deducted tax at Source on the Intt. thus earned which is very heavy.  My querry is whether we all brothers and sisters ( major sons and daughters) having  HUF share in the above ancestral property, can file our seperate HUF returns of our share and claim refund of TDS thus deducted from the enhanced compemnsation/interest in the haqnds of our father.

  • Anandana

    Hi i want to know is it necessary to have ancestral property to start a HUF. My husband and myself have no such thing but want to start a HUF for tax savings. Pls suggest.

    • Anonymous

      As per Hindu law you need to create a HUF as by birth you get entitle your share in the undivided propery of your grandfather. But for income tax purpose you can create HUF by declaring HUF corpus. So either you receive gift from any relative with clear onstruction that this fund is for your family. Deposit this fund into HUF account and get start investing the money. Pls call me at 09811840707 for any assistance.
      Mukesh Goel
      Sent from BlackBerry® on Airtel

  • http://pulse.yahoo.com/_5SMUWCLOZKEQWLJDOW7SMZ7FOA vinod

    Sir,

    From the discussions here, I understand that for an HUF to be able to
    start functioning and file ITR etc., the following procedure has to be
    followed:

    1. Create a corpus for HUF by obtaining gift from relative (not a member
    of HUF) for any amount or from any stranger for an amount not exceeding
    50k.

    2. Obtain a PAN card.

    Query:

    a. What about the address and ID proofs. Will documents of Karta would suffice.

    b. Whether deed or any other details like present members etc. needs to
    be filed along with PAN application or while filing ITR.

    3. Open Bank account

    4. Start filing ITR.

  • M3R1ASSOCIATE

    i would like to create a HUF but ilike to know that its advantages + dis advantages of HUF…

  • Vinod B Jangam

    Useful & explained in simple language for layman.
    Thanks

  • http://pulse.yahoo.com/_GLZ75WC7TFSQU4GF6KZL74D7MQ amit

    Sri mukeshbhai
    i have been paying incometax under HUF category since 1985.  Till i changed my c.a. from suresh g shah to venus shah in 2002-03,  However,afterwards,it was not paid from 2002 till today.  though huf is a partner in my running partnership firm at mumbai.  When i checked my pan card of huf,i happen to make a mistake ,by putting date of incorporation as birthdate instead of when i started the a/c.  what to do now,pl advice. i want to regularise everything and wish to divide the property to my family members
    tks
    ramesh c luthia

    • Anonymous

      You can change the date of incorporation of HUF by filing PAN Correction form.

  • Bhavir0812

    if the person has a daugter he open huf account?

    • Anonymous

      Yes, A hindu family having daughter only can continue as HUF. So you can open HUF account even if you have only daughter.

  • Vijay Koli

    Can a HUF purchase a Insurance Policy from HUF account payment.

  • Sarath

    Hi,

    Can I fund HUF Account with rental income from my individual property?
    Property is on my name/individual PAN and want to put rental income on this property to HUF Account so that I can file it separately during ITR.
    Please clarify.

    Regards,
    Sarath.

    • Mukesh Goel

      No, As a karta of the HUF, you can not transfer your individual income to the HUF. In such the income will be assessed in you hand not in the hands of HUF. Rental Income of the HUF property can only be assessed in the hands of HUF.

  • Vijay

    I have HUF entity for last 10 years but HUF deed was not done. What is the procedure involved in making the deed now ?

  • Surendra

    I have a HUF status and the family consists of self (Karta), wife and two married daughters. Married daughters are copancers as per amended act of 2005. Can the HUF continue after my death ? IF so, can my daughter be Karta ??

  • kailas

    If, some one got money in fathers(or donors) locker (after donor’s death) & bank a/c & karta want to start business (HUF) from that amount then how he/she get donor’s sign on form after donor’s death

  • Avinash

    Which format is to be used..?? Format I or II or both..??

  • amit rampuria

    can huf pan card applies having no child ?

    • http://www.mukeshraj.com/ Mukesh Goel

      Yes, HUF can exist without any child also. So you can apply for the PAN card as soon as it comes into existance.

      Mukesh

  • Nand Lall Daga

    nice draft bof HUF