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. 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 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 94 (formerly form 49A) to apply for an HUF PAN card in India.
Step 3: 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.
How to Apply Online for an HUF PAN Card in India:
To obtain a HUF PAN card in India, visit the Protean (formerly NSDL eGOV) portal, select Form 94, and enter the following information.
- Select PAN Application Type
(New PAN – form no. 93 & 94) - Select Applicant Category
(Hindu Undivided Family) - Applicant Name:
(Enter HUF name in Last Name / Surname) - Date of Birth / Incorporation / Formation (DD/MM/YYYY)
(Enter date of marriage of Karta) - Email ID
(Enter any active email id) - Mobile Number
(Enter any active mobile no.) - Source of Income
(Select no income) - Address for communication
(Enter full address of the Karta as per address proof) - Telephone Number & Email ID details
(Enter Country code (ISD code) - Authorized Representative
(Enter Karta’s PAN/Aadhaar No., Name, Address, Mobile No., Email ID and select proof of identity and address.)
- Choose Income-tax AO code
(Enter Area code, AO Type, Range Code, AO No.) - Documents submitted as Proof of Identity (POI), Proof of Address (POA) and Proof of Date of Birth (DOB)
(Select Proof of identity – Karta’s Aadhaar card)
(Select Proof of address – Karta’s Aadhaar card)
(Select Proof of date of birth – Karta’s any one document (Birth Certificate / Voter ID / Passport / Driving License / Class 10 Mark Sheet) - Verification & Declaration
Name – Full name of Karta
Designation – Karta
Place – City NameAfter submitting all this information, you can pay the applicable fees and print the generated acknowledgment form. After filling out the PAN card application form for a HUF, it must be couriered to the Income Tax PAN Office along with the relevant documents.
Documents to be couriered for a HUF PAN Card in India
- Signed PAN application form 94
- Copy of PAN Card of Karta
- Copy of Aadhar Card of Karta
- Copy of Karta’s date of birth proof
(Birth Certificate / Voter ID / Passport / Driving License / Class 10 Mark Sheet) - HUF deed/ HUF declaration
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 Deed and HUF PAN card in India
If you make a legal HUF deed and HUF PAN card through us, then you will have to pay Rs 2000.
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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