The full form of HUF in India is “Hindu Undivided Family”. A Hindu Undivided Family (‘HUF’) is considered to be a single entity, or ‘person,’ for tax purposes under the Income Tax Act, 1961. A Hindu family can apply for an HUF PAN card in India. The HUF PAN card is valid throughout the country except for the state of Kerala. Individuals can reduce their income tax liability by obtaining an HUF PAN card. A separate ITR is filed for the HUF PAN card in India. As a result, HUF PAN card holders are eligible for income tax exemption in the same manner as an individuals in India.
A HUF PAN card in India comprises:
Karta: The family’s primary decision-maker is often the oldest member, known as the ‘Karta’, who is responsible for signing important documents and making key decisions regarding the family’s economic, financial, and social affairs.
Co-Parceners: A co-parcener is a member who has the right to demand a share in the property of a Hindu Undivided Family. A co-parcener is free to separate from the family with their share.
In the Hindu Undivided Family hierarchy, the co-parcener extends up to four generations as follows:
1st generation: 1st-time holder of ancestral property
2nd generation: Sons and daughters
3rd generation: Grandsons
4th generation: Great-grandsons
Steps to get a HUF PAN card in India.
Step 1: Make a deed for HUF PAN Card in India
The HUF deed is a legal document that is usually prepared on stamp paper. This document contains details about the Karta, co-parceners, and other family members of the HUF, including their names, addresses, and relationships, as well as the date of establishment of the HUF.
Step 2: Application for HUF PAN card in India
HUF is considered a separate entity under section 2(31) of the Income Tax Act of India. Therefore, it requires a separate HUF PAN card in India under the tax system. For this, the taxpayer has to fill out Form 49A to apply for an HUF PAN card in India.
Step3: Bank account for HUF PAN card in India
Since HUF is considered a separate entity under the Income Tax Department in India, it requires a separate bank account for business, taxes, income tax returns, GST registrations, and capital formation purposes. A savings account for the HUF PAN card can be opened in any branch in India.
Documents required for making HUF PAN card in India
- Copy of PAN Card of Karta
- Copy of Aadhar Card of Karta
- Copy of PAN Card of Karta’s spouse
- Names of family members and their relationship with the Karta
- Email id & mobile no. of Karta
- HUF deed
- HUF Sources of Income
The following income can be earned using HUF PAN card in India:
- Income from business and profession
- Income from the rent of the property
- Income from long-term & short-term Capital Gains
- Income from other sources
Cost of making HUF PAN card in India
If you make a HUF PAN card through us, then you will have to pay Rs 2000, which includes the Hindu Undivided Family (HUF) deed and HUF income tax registration.
Final statement
E-Tax World believes this article has provided information on “How to obtain a HUF PAN card in India/ HUF registration, HUF PAN card fees in India (comprising HUF deed and HUF registration in Income tax), tax savings through HUF formation, benefits of HUF registration/ HUF PAN card in India”.
To save taxes by obtaining a HUF PAN card, please reach out to us at 9958869427 and we will be happy to discuss this further with you.
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