A Detailed Look at The HUF Registration Online Process

HUF refers to Hindu Undivided Family and is regulated by the Hindu Law Board. A married couple or members of a joint family can establish a HUF. A minimum of two members is needed to create a HUF, with at least one being a male member of the family. The eldest male member of the family is designated as ‘Karta.’

While it is regulated by the Hindu Law Board, it can also be established by Jains, Sikhs, and Buddhists. It is a group made up of individuals directly descended from a shared ancestor, along with their wives and unmarried daughters.
Take note of the documents required for the HUF registration online process:

1. PAN 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.
6. HUF deed/HUF affidavit:

HUF Registration Online Process

The HUF registration online process consists of three primary steps.

First Step: HUF Deed format: We use information about the Karta and his family to create the HUF deed. The deed requires a specific type of stamp paper worth ₹100. The HUF deed and stamp paper need someone to sign them; the Karta is the one who signs and notarizes them.

Second Step: Applying for a HUF PAN card online: Form 49A (Application for Allotment of PAN) must be submitted to request the HUF PAN card. The Karta must sign in three areas on Form 49A and send the documents listed below via courier to the ‘Income Tax PAN Services Unit, Pune’:

a) Signed Form 49A
b) Photocopy of Notarized HUF deed
c) Photocopy of the Karta’s self-attested PAN and Aadhaar card

Third Step: Bank Account for HUF: Once the HUF PAN card and HUF deed are acquired, the Karta may open a savings account at the closest branch. When opening an HUF bank account, it is also necessary for the HUF to possess a rubber stamp. This is the final phase of the HUF registration online process.

Timeline for HUF Registration Online Process

Permanent Account Number (PAN) for HUF is provided within 5 working days of receiving the original signed documents from the Karta at the Income Tax PAN Service Unit in Pune. After this, a bank account can be opened for the HUF, and activities can begin.

HUF Registration Consultants and Their Fees

E-Tax World offers hassle-free HUF registration services in India at an affordable and reasonable price, which includes the HUF deed and the HUF PAN card.

Main Advantages of HUF Registration Online Process

1. Each family member is able to contribute their earnings to the shared fund.
2. Authority rests with one individual, with involvement from the whole family.
3. Donations gathered up to a value of ₹50,000 will not incur tax. A father with a HUF account can give property or cash of greater value to a son who has a smaller HUF account, but he must clarify that the gift is meant for the son’s HUF and not for him personally. Following sections 64(2) and 56(2), tax advantages can be obtained in this scenario.
4. The corpus can be utilized for investing in tax-exempt financial instruments.
5. The corpus can only be divided with the consensus of each coparcener in the family.
6. The Income Tax Act acknowledges HUF as a separate assessable or taxable body. Thus, HUFs benefit from all deductions and exemptions stated in the IT Act, regardless of the income and tax obligations of its members. An individual Income Tax Return is submitted according to the Income Tax Act.
7. Tax Benefits – For instance, a hereditary asset that generates rental revenue. In typical situations, the rent will be linked to an individual’s income and taxed based on that person’s tax bracket. Nevertheless, if it is moved to an HUF, the income will belong to the HUF and will be taxed independently.
8. HUF can apply for GST registration to conduct business.
   

   
   FAQs

Question 1: Where to register the HUF deed?

Answer: For the registration of the HUF deed, the prepared HUF deed needs to be notarized on Rs. 100 stamp paper. This is possible at any authorized stamp paper vendor or at the nearest tehsil and authority.

Question 2: Does HUF have an Aadhaar card?

Answer: Aadhaar cards are issued to individual people. They do not pertain to entities such as companies, sole proprietorships, HUFs, and so on. If needed, the Karta’s Aadhaar can be provided.

Question 3: How to apply for an HUF PAN card online?

Answer: Form_49A.PDF is submitted to obtain a PAN card for HUF. In this case, the Aadhaar of the Karta is provided as KYC documentation.

Question 4: How to form a HUF?

Answer: There is no need to form a HUF; rather, it gets created automatically after marriage. However, it is essential to register for income tax advantages.

Question 5: Is HUF required to be registered?

Answer: A HUF must possess a HUF deed/affidavit. The HUF deed/affidavit must include information about the Karta and members of the HUF. A PAN number and a bank account need to be established under the name of the HUF.

Question 6: How to register a HUF?

Answer: There are three steps to be completed to register a HUF:

1) Make a HUF deed/affidavit, 2) apply for an HUF PAN card, and 3) open a bank account for HUF.

Question 7: How to make a HUF deed online?

Answer: The HUF deed is considered a legal document; contact a professional to create the HUF deed or affidavit.

Question 8: What should be the HUF deed stamp paper value?

Answer: A HUF deed or HUF affidavit can be created on Rs. 100 stamp paper; however, it must be notarized.

Question 9: What are the documents required for the HUF deed?

Answer: 1) PAN and Aadhaar card of the Karta, 2) PAN card of the Karta’s spouse, 3) Names of children (if any), 4) Date of marriage, and 5) Sources of income.

“Hope this article helps you understand HUF registration.”