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HUF Registration Services In India

HUF Registration Services In India

Hindu Undivided Family (HUF) Registration Services in India”

(HUF is an excellent tool for the tax saving under Section 2(31) of the Income Tax Act, 1961.)


HUF Registration Online Process Fee:  2,000/-

(which Includes HUF PAN Card, HUF Deed/Affidavit, & HUF registration on the Income Tax Portal

✅️ Easy & convenient HUF Registration Process Online.
✅️ Receive HUF PAN Card within 5 Days.
✅️ Free consultation about HUF Registration Online, HUF benefits, HUF GST Registration, HUF Tax Slab, HUF Income Tax Return (ITR) e-filing, and more.

What is the Indian definition of Hindu Undivided Family (HUF) and HUF Registration ?

HUF stands for Hindu Undivided Family. HUF is recognized under Hindu law and the Income Tax Act, and it is formed by Hindu, Sikh, Jain, or Buddhist families. Non-Hindu families cannot form an HUF.

HUF is a distinct legal entity with the ability to generate revenue on its own. HUF assists with lawful tax savings. Consequently, an HUF may file a separate income tax return and be eligible for deductions under different provisions of the Income Tax Act.

In this Hindu Undivided Family (HUF), the oldest male family member serves as Karta. The Karta’s personal account does not contain any income from the HUF.

Stamp duty is not required when transferring property in an HUF. In summary, HUF registration is for individuals who pay taxes on their businesses, share market revenue, rent, interest, dividends, and related bank income in addition to their monthly salaries.

Documents Required for Hindu Undivided Family (HUF) Registration

To register a Hindu Undivided Family (HUF) in India, the following documents are typically required for HUF Registration online:

1. PAN & Aadhaar card of the Karta
2. PAN card of the Karta’s Spouse
3. Name of Children (if any) 
4. Date of Marriage
5. Email Id & Mobile No. 
6. HUF Deed

HUF registration process on the income tax portal

or

online application process for HUF PAN Card

or

HUF registration online # Step-by-Step 

Under the Hindu Undivided Family Act, the following procedures are involved in the HUF registration services in India or the HUF PAN Card application:

#Step 1: Create Hindu Undivided Family (HUF) Deed

The details of the Karta and his family are used to draft the HUF deed.

The HUF deed requires ₹100 in stamp paper.

The HUF deed and the stamp paper must be signed by the Karta and notarized.

#Step 2: Apply for PAN Card for HUF

Form 49A (Application for Allotment of PAN) shall be filed to apply for the HUF PAN card.

The Karta shall put his signature in three places on Form 49A and courier the documents listed below to “Income Tax PAN Services Unit (Managed by Protege eGov Technologies Ltd.) 4th Floor, Sapphire Chambers, Baner Road, Baner, Pune – 411045”:

      a) Form 49A (Original)

      b) HUF Deed with Stamp Paper (Photocopy)

      c) Self-attested PAN and Aadhaar Card of the Karta (Photocopy)

#Step 3: Open a Bank Account for HUF   

After obtaining the HUF PAN card, the Karta can open a savings account at the nearest branch.

Procedure for opening a Bank Account for HUF & Required Document

A Hindu Undivided Family (HUF) can open its savings account in any bank and avail itself of benefits such as a Debit Card, Credit Card, Net Banking, Home Loan, Auto Loan, etc.

The documents required for an HUF saving account are:

      a) HUF PAN Card
      b) HUF Deed
      c) PAN & Aadhaar Card of the Karta
      d) Passport size photo of the Karta
      e) Email Id & Mobile No. of the Karta
      f) Cheque of ₹10,000/- from the Karta’s Bank Account

With the help of all these documents, an HUF can open its demat account in various trading companies like Zerodha, Groww, Angel One, Upstox, etc., that are available to work in the stock market.

GST Registration Threshold for HUF

GST Registration for HUF should be applied for if the HUF is engaged in the business of supplying goods or services.

Hindu Undivided Families (HUFs) having an annual turnover of more than ₹40 lakh (for goods) and ₹20 lakh (for services) are required to register for GST and pay tax on their taxable goods and services.

However, businesses with less than this annual turnover are not required to register for GST but can choose to register for GST voluntarily. Therefore, HUFs can register for GST and get a GST number allotted.

GST Registration Process for HUF & Documents Required

GST registration is required for a Hindu Undivided Family (HUF) to comply with the Goods and Services Tax (GST) law for businesses in India. To complete the process and get the HUF registered in GST, various required documents have to be provided under the GST Act.

The first step in the online application process is to register for GST for the HUF by going to the GST portal website.

The most important and noticeable part of the process is filling out a thorough application form, uploading all of the documents listed below, and sending them in for processing. For this reason, every effort is made to ensure that no information is entered incorrectly.

The GST Department must verify the HUF before assigning it a GSTIN and registering it in the GST system.

The following documents will be required for GST registration for HUF:

  1. HUF PAN Card
  2. Photo of Karta
  3. Declaration & Authorization Letter
  4. Address Proof of the HUF
  5. PAN & Aadhaar Card of the Karta
  6. Bank Account Details of HUF

HUF Income Sources in India

Income Under a Hindu Undivided Family (HUF), arises through various sources: 

  1. Income from House Property

       An HUF can earn rental income from land or buildings. However, the property must be transferred to the name of the HUF.

  1. Income from Business and Profession 

       An HUF can earn profits and income from any business or profession and can also obtain GST registration for it.

  1. Income from Capital Gain

       The HUF can make short-term or long-term profits by selling property, such as land, buildings, jewelry, precious stones, and ornaments made of silver, gold, platinum, or any other precious metal if it owns the property or if it is transferred in the HUF’s name.

       Even if they are used for private reasons, artwork such as sculptures, paintings, photographs, or archaeological collections will be regarded as capital assets.

       The HUF is capable of generating capital gains from equities and securities traded on stock exchanges, units of UTI, zero-coupon bonds, and similar financial instruments.

 4.  Income from Other Sources

      Dividends, lottery winnings, crossword puzzles, horse races, card games, gambling or betting, interest on assets, and interest from savings accounts are some of the ways that can HUF can generate revenue.

Benefits of HUF Registration Services in India

      Registering a Hindu Undivided Family (HUF) in India offers several advantages:

  1. Tax Benefits: HUFs are eligible for various tax deductions and exemptions available under Indian tax laws. This includes deductions for expenses incurred for the benefit of the family, such as medical expenses, education expenses, and donations to charitable organizations.
  2. Asset Protection: Assets owned by the HUF are considered separate from the personal assets of its members. This provides a layer of protection against individual creditors and legal liabilities, enhancing asset security.
  3. Continuity of Ownership: HUF property remains intact even in the event of the demise of its members. This ensures ownership continuity and facilitates seamless asset transfer to future generations.
  4. Pooling of Resources: HUF registration services in India allow family members to pool their financial resources and jointly own assets. This enables efficient family wealth management and facilitates collective decision-making on financial matters.
  5. Separate Legal Entity: Upon registration, the HUF becomes a distinct legal entity with its PAN (Permanent Account Number) and bank accounts. This enables the HUF to enter into contracts, conduct business transactions, and own property in its name.
  6. Succession Planning: HUF registration services in India provides a structured framework for succession planning, allowing for the smooth transfer of assets from one generation to the next. This helps preserve family wealth and ensure future generations’ financial security.
  7.  Others: HUF can accept gifts of up to ₹50,000 from any person. It can open its own can open its own separate Demat account, invest in business, shares, mutual funds, fixed deposits and property.

    It can apply for a loan as well. The basic idea behind HUF is that, in order to receive tax benefits, a second PAN card is established. It receives all of the tax deductions that are available to an individual because it is a separate entity.

Overall, HUF registration services in India offer families a range of benefits, including tax efficiency, asset protection, and succession planning, making it an attractive option for wealth management and financial planning.

An HUF account, HUF PAN card, and HUF registration are all the same, but people call them by different names. The common man is still unaware of the tax benefits of HUF registration under section 2(31) of the Income Tax Act, 1961.

Therefore, if you have not yet completed HUF registration, then complete the HUF registration online process as soon as possible. By being a separate HUF PAN holder, you can avail yourself of the benefits of income tax exemptions and deductions.

At E-Tax World, (where affordable GST registration services are available), we specialize in guiding families through the process of HUF registration, ensuring compliance with all legal requirements, and maximizing the benefits for  you and your loved ones!

E-Tax World is the only leading consultancy firm in India that provides maximum HUF Registration online services every year.

You can contact us at 9958869427 to get hassle-free online HUF Registration in India.

We assure you that you will receive your HUF PAN card within five working days.

You can contact us from any state of India as this is a PAN-India service!

FAQs ( Frequently Asked Questions )

A Hindu Undivided Family (HUF) is a legal entity comprising members of a Hindu family bound together by blood relations and a common ancestor. Registering an HUF provides various benefits such as tax planning, succession planning, and protection of family assets.

The Karta is typically the eldest male member of the family and acts as the head of the HUF. However, in cases where the eldest male is unable or unwilling to assume the role, any other competent member can be appointed as the Karta.

The documents required for HUF registration include the PAN card & Aadhaar Card of the Karta, and the PAN card of the Karta’s  spouse. In addition, a duly signed HUF deed or declaration is required.

While it’s not mandatory to register a HUF, doing so offers legal recognition and various benefits. Non-registration may lead to difficulties in proving the existence of the HUF for taxation or succession purposes, and it may limit access to certain financial and legal benefits.

The registration process is completed within five working days after the Karta provides the information and documents as per the list given for HUF registration and PAN card.

Three generations of a family can form their own separate HUF.

Coparcener is the person who has the right to demand a share in the HUF property, if he wants to separate from the family or HUF with his share and here the member will be referred to as the Karta’s wife.

Since HUFs have a separate PAN Card and file income tax returns in India, HUFs are entitled to income tax exemptions in India as are individuals.

A HUF can earn income only on the basis of capital.

No, this is not possible. Because it depicts a family.

Because commission income needs personal skills therefore commission income will not sustain for HUF.

Providing consultancy services is not a business of HUF.

Karta can choose any one of ITR 2, ITR 3 and ITR 4 depending on its income under Hindu Undivided Family (HUF) Act.

The Karta or the members of the HUF can transfer their individually owned property to the HUF using a gift deed.

After marriage, Hindu Undivided Family (HUF) is automatically formed but it has to be registered with the Income Tax through HUF deed and HUF PAN card so that its benefits can be availed.

A Non-Resident Indian (NRI) cannot act as a Karta in a Hindu Undivided Family (HUF), but yes, he can be a member of a HUF.

All individuals living in a Hindu family, including husband, wife, children, their respective spouses and their progeny, are eligible to be included in a Hindu Undivided Family (HUF).

Firstly, create HUF Deed, then apply PAN Card for HUF and lastly open bank account for HUF In India. 

The same tax slab prescribed by Income Tax for an individual is also applicable for HUF. That is, according to the old tax regime there is no tax on income up to ₹ 2,50,000 and according to the new tax regime there is no tax on income up to ₹ 3,00,000.

A HUF is eligible to claim a deduction of ₹1.5 lakh Section 80C, ₹25,000-₹50,000 Section 80D, ₹2 lakh Section 24(b) and ₹10,000 Section 80TTA in its Income Tax Return (ITR).

A woman can become the Karta in a Hindu Undivided Family if she is the head of the family and her husband is no longer alive.

We will charge only ₹2,000 for which we will make HUF Deed (Affidavit) and HUF PAN Card for registration in Income Tax.

Co-parceners have the right to share in the family property, if they choose to separate from the Hindu Undivided Family. The hierarchy of co-partners extends to four degrees within the family structure:

Degree#1: First time holder of ancestral property.

Degree#2: Sons and Daughters.

Degree#3: Grandchildren.

Degree#4: Great-grandchildren.

  1. Eldest son: Traditionally, the eldest son of the Karta becomes the new Karta in Hindu Undivided Family (HUF).
  2. Any other member of the family: If the eldest son is not present or is not capable, any other eligible male member of the family can become the Karta.
  3. Female Karta: Women of the family can also become Karta if they are capable and qualified.

This is not possible. Hindu Undivided Family is formed only after marriage. A single individual cannot form a HUF.

Hindu Undivided Family (HUF) got legal recognition in the late 19th century, but it was only in 1922, under colonial rule, that the Income Tax Act gave it the status of a separate and distinct tax entity.

If the income of the HUF is taxable as per the income tax slab then it will be mandatory to file Income Tax Return (ITR).

While making a HUF deed and applying for a HUF PAN card, the date of marriage is considered as the date of formation of the HUF.