We must explain to you how all seds this mistakens idea denouncing pleasures and praising account.
When it comes to smart tax planning, most people think of deductions and exemptions, but very few know that forming a HUF (Hindu Undivided Family) can help you legally save a good amount of tax and manage family wealth efficiently. If you come from a Hindu, Jain, Sikh, or Buddhist family and live jointly with your family members, then you can create a separate legal entity under Indian Income Tax laws known as an HUF.
At CallmyCA, we help you understand what HUF Incorporation means and how it can benefit your family's financial structure. HUF is not just a concept, but a tax-saving legal identity that allows your family to earn income, own property, and file tax returns independently, apart from your personal PAN. Whether you want to invest in real estate, run a family business, or just plan your taxes better, setting up a HUF is the right step.
HUF is formed by the head of the family, called the Karta, and includes all lineal descendants like children, grandchildren, and spouses. Once the HUF is created, a separate PAN card and bank account are issued in the name of the HUF, which can be used for investments, receiving rent, running a family business, and more. Many people use HUF to claim tax exemptions on income like rental income, capital gains, or business income by dividing it legally from their income.
We help you with complete legal formalities, drafting the HUF deed, getting the PAN, opening a bank account, and advising on how to operate the HUF effectively. Whether you're just exploring the idea or ready to register, we’ve got your back from start to finish.
On Stamp Paper
Within 2 months
HUF allows you to claim tax deductions and exemptions separately from your income, reducing overall tax liability.
You get a different PAN and bank account in the name of your HUF, which helps in organizing family income and investments legally.
Income from ancestral property, rent, or family-run businesses can be routed through HUF to claim benefits and manage taxes.
HUF provides a structure to manage and grow family wealth under a common roof with proper legal documentation.
HUF can own and invest in property separately, which can be beneficial for wealth planning and taxation.
HUF compliance is simple. It only needs to file an ITR and maintain basic books if income exceeds basic exemption.
Upon death of the Karta, the next senior-most male/female member becomes the new Karta, ensuring continuity.
It helps in organizing incomes in traditional joint families where many members are dependent or contribute to a single source.
From deed preparation to PAN application, our expert CA team takes care of every step and ensures 100% accuracy and compliance.
HUF stands for Hindu Undivided Family, a legal entity recognized under Indian tax laws. It allows a family to collectively earn income and file tax returns separate from individual members. HUF helps in reducing your tax burden by splitting income legally between you and your family unit. It’s useful for handling rental income, investments, and business income under a single umbrella while maintaining legal compliance.
Any Hindu, Jain, Sikh, or Buddhist family that is living together and has a common ancestor can form a HUF. It is not restricted to Hindus by religion alone but includes these communities as per Hindu Law. Even if your family isn’t running a business, you can still form a HUF to manage property or rental income.
The Karta is the head of the HUF and usually the eldest male member of the family. However, after recent legal changes, even the eldest female member can become the Karta. The Karta manages the financial affairs, signs documents, and represents the HUF in legal matters.
Yes, as per recent rulings by the Supreme Court of India, a woman can also be the Karta if she is the eldest member of the HUF. This ensures equal rights and recognition of women in financial decision-making in the family.
A HUF gets a separate basic exemption limit of ?2.5 lakhs, which means income up to this amount is tax-free. Also, HUF can claim deductions under sections like 80C, 80D, etc., just like individuals. So, you save more by splitting income legally between you and the HUF.
The government does not charge a fee for forming HUF itself, but PAN application, deed preparation, and CA consultation may involve charges. At CallmyCA, we offer affordable all-in-one HUF incorporation packages.
Yes, HUF can run a business, invest in mutual funds, stock market, or even buy/sell property. However, it must maintain separate books of accounts and file tax returns if income exceeds limits.
The next senior-most family member becomes the new Karta, and the HUF continues. The property and bank account remain in the name of the HUF unless dissolved by a formal partition.
NRIs can be part of a HUF if they are lineal descendants, but they cannot be Karta if they are not residing in India. However, specific advice should be taken for NRI-related HUF cases.
Yes, HUF can be closed through a legal partition deed signed by all members and submitted to the Income Tax Department. However once partitioned, it cannot be re-formed with the same structure.
Call-My-CA - Copyright 2025. All Rights Reserved || Design & Developed by CWL Technology Pvt. Ltd.
