Hindu Undivided Family (HUF) Registration
Are you seeking a reliable and experienced consultant for quick and hassle-free HUF registration in India? We would like to inform you that E-Tax World is the premier consulting firm focused on HUF formation services throughout India. Create your HUF quickly with clear guidance on the setup process, necessary legal documents, compliance obligations, and associated steps. At E-Tax World, we specialize in providing specialized top-level tax consultancy services to meet the diverse needs of the formation and registration of Hindu Undivided Family (HUF) in India.
Regulations for Hindu Undivided Family – HUF
HUF is an abbreviation for Hindu Undivided Family. Acknowledged by Hindu law, an HUF serves as a legal entity created by a family linked through common heritage and communal living arrangements. Within the framework of Indian taxation, the Income Tax Act acknowledges HUF as a separate taxable entity possessing a specific PAN (Permanent Account Number) for tax purposes.
A Hindu Undivided Family is automatically created when an individual marries and begins a household. Therefore, there is no necessity for the family to have children; when a marriage occurs, an HUF is established. HUF is recognized as an independent legal entity which is fully managed and governed by the eldest member (called ‘Karta’) of the family. The Karta has the authority to make decisions regarding the properties of the HUF and to coordinate all the activities related to purchasing, selling, and renting.
Small family enterprises, investment firms, stock trading, and initial public offerings (IPOs) are common commercial activities that lead to the foundation of a HUF through a HUF deed. Reach out to us for HUF registration services in India.
HUF Registration Fees
E-Tax World provides the complete process of HUF Registration at just Rs.2000/- across India, which includes:
- Legal Hindu Undivided Family (HUF) deed/affidavit
- HUF PAN card (Physical & e-PAN)
Documents required for HUF registration
The following documents are required for HUF Registration:
1. PAN card and Aadhaar card of the Karta
2. PAN card of the Karta’s spouse
3. Names of children (if any)
4. Date of marriage
5. Email ID and mobile no.
Standards for HUF Registration
The establishment of an HUF requires that only the conditions listed below be satisfied:
- The individual (called the ‘Karta’) or the family should belong to the Hindu, Buddhist, Jain, or Sikh religions.
- The individual (called the ‘Karta’) must be married.
Advantages of HUF Registration
There are many benefits that accrue from forming a Hindu Undivided Family (HUF) in India and registering it with Income Tax:
Tax Advantages: HUFs qualify for multiple tax deductions and exemptions provided by Indian tax regulations. This encompasses deductions for costs associated with the family’s welfare, including medical costs, educational fees, and contributions to charitable groups. In India, the number of salaried employees is the highest in terms of getting tax benefits by forming HUF. For comprehensive details, you can refer to our article “The Ultimate Guide to: HUF Tax Benefits for Salaried Employees.”
Continuity of Ownership: HUF assets remain undisturbed even if its members pass away. This guarantees ongoing ownership and aids in the smooth transfer of assets to the next generations.
Distinct Entity: HUF possesses its own PAN card, similar to an individual, thus it is regarded as a distinct entity. A separate bank account is opened for it, and its transactions are considered separate from the personal account of the person conducting the transaction.
Succession Scheme: A well-organized method of succession planning, facilitated by HUF, ensures a seamless transition of assets across generations. This ensures future generations’ financial security and helps preserve family assets.
Others: A HUF is allowed to accept gifts up to Rs 50,000 from any individual without the need for income tax compliance. It can establish its own individual Demat account, invest in businesses, stocks, mutual funds, term deposits, and real estate.
Income Tax Slab for HUF
The government has not issued any separate income tax slab for HUF. The income tax slab for HUF is the same as for an individual. For comprehensive details, you can refer to our article “Income Tax Slab for HUF: Latest Rates and Tax Benefits.“
HUF Registration Process
1st Step: Gathering the Necessary Documents: –
You will send the necessary documents to us through WhatsApp or email for the creation of the HUF deed and PAN card.
2nd Step: HUF Deed Signing: –
The Karta will sign the HUF deed draft provided by us and have it notarized with stamp paper.
3rd Step: Get HUF Registered Account
E-Tax World will complete the process of HUF formation, HUF PAN card creation, and bank account opening in a very simple and easy way within the shortest possible time. We also assist you with HUF compliance, filing Income Tax Returns (ITR) for HUF, and obtaining GST registration for HUF business as per your requirements.
Compliance obligations for HUF
Compliance for an HUF is straightforward and simple, just like for an individual, as only an Income Tax Return needs to be filed if the HUF’s income exceeds the basic exemption limit of income tax.
Goods & Service Tax (GST) Registration Process for HUF
If the revenue of the HUF surpasses ₹40 lakh (for goods) and ₹20 lakh (for services) in any financial year, GST registration becomes compulsory. Nevertheless, HUFs with an annual turnover below this threshold do not have to register for GST, although they may opt to register for GST on a voluntary basis. As a result, HUFs are able to register for GST and obtain a GST number. If the HUF wants to sell its products on online e-commerce portals such as Amazon, Flipkart, etc., then it needs to apply for GST registration. Please contact us for hassle free GST registration for HUF.
Document Required for GST Registration of HUF
Listed below are the documents required for GST registration for HUF:
- HUF PAN card
- PAN card and Aadhaar card of the Karta
- Passport-sized photo
- Address proof
- Email ID and mobile no.
- Business activities for HSN
Reasons to Select E-Tax World for HUF Registration in India
Free Consultation: We offer our clients free consultation for tax advisory services, ensuring they receive optimal financial guidance and streamlined support to grow their businesses.
Achievement: We have successfully reached the top 5 ranking on Google for providing the best financial solutions to our clients, ensuring that the HUF registration process is completed in as little time as possible.
Position: E-Tax World is a leading consulting firm that handles the highest number of HUF registrations annually in India.
Support: Our experienced professionals provide 24×7 taxation consultation and HUF formation services across India.
Reasonable Fees: E-Tax World offers its customers the most economical and reasonable fees for HUF registration. Apart from this, we also offer Udyam Registration for HUF (MSME), GST Registration and Return Filing, Income Tax Return (ITR) Filing and TDS Compliance on Property Purchase at minimal amount.
Appropriate Guidance: Through E-Tax World you can get correct, easy and accurate information about HUF in simple language by reading the articles available in the blog section on our website. By following it, you will get all the necessary information about formation of HUF, HUF registration deed, stamp paper value for HUF deed, HUF registration certificate, PAN card application for HUF, advantages and disadvantages of HUF and income tax slabs applicable to HUF at one place.
HUF Registration Consultant in India
Name of Consultant: Mr. Honey Jain C/o E-Tax World
Service Areas: PAN India
Contact No.: 9958869427
Email ID: info@etaxworld.in