HUF

HUF stands for Hindu Undivided Family, a unique legal entity under Hindu law in India. It is a family structure that allows a group of individuals, primarily related by blood or marriage, to come together as a single family for the purpose of managing and conducting business or property under a common name. The HUF is a distinct concept in the context of Hindu law, especially in matters of inheritance, taxation, and business.

DOCUMENTS REQUIRED

  • Adhar Card and PAN Card of Karta
  • Contact no and email-id
  • Proof of relationship among members (e.g. birth certificate)
  • Photo
  • HUF Deed
  • PAN CARD of HUF

BENEFITS OF HUF

Forming a Hindu Undivided Family (HUF) offers several benefits, like:

  1. Tax Benefits
  2. Succession and Estate Planning
  3. Sharing of Income Among Family Members
  4. Inclusion of Family Members in Wealth Creation
  5. Wealth Accumulation and Asset Management
  6. Financial Independence of Members
  7. Ease of Setting Up and Low Maintenance
  8. Inclusion of Family Members in Wealth Creation

POST REGISTRATION COMPLIANCES

Certain post compliances after forming HUF are:

  1. Open Bank Account:

The HUF must maintain a separate bank account in the name of the HUF

  1. ITR (Income tax return)

HUFs are required to file annual income tax returns if their total income exceeds the basic exemption limit

  1. Changes in HUF structure

If the Karta of the HUF changes (due to resignation, death, etc.), the new Karta must apply for a new PAN card, update the bank account, etc.

  1. TDS (Tax Deducted at Source) Compliance

If the HUF is liable to deduct TDS, it must comply with TDS provisions

 

REGISTRATION REQUIRED FOR HUF

Following registrations may be required by HUF:

  1. GST registration

If the HUF is engaged in business and its turnover exceeds the GST threshold limit, it needs to obtain GST registration.

  1. FSSAI License (if food business):

If the HUF involves food processing or trading, the Food Safety and Standards Authority of India (FSSAI) license is required.

  1. Import/Export License:

If the HUF engages in import/export, you must obtain an IEC (Import Export Code)

  1. BRN Registration:

 BRN registration is important as it gives an entity a unique identity. It is a 16- digit number