Stamp Paper for HUF deed
To bring a Hindu Undivided Family (HUF) into existence, a HUF PAN card, a HUF deed, and a bank account are required; this entire process is also referred to as HUF registration. A drafted HUF deed acquires legal validity only when the applicable stamp duty has been paid and it has been notarized by a registered notary officer. While the price of stamp paper may vary by state and city, it is generally applicable for property matters. You can legally create an HUF deed in any state in India using stamp paper of ₹100. The HUF deed is signed by the Karta and family members and is notarized using stamp paper. To procure stamp paper for an HUF deed, you may visit the official website of the Stock Holding Corporation of India (SHCIL) or contact a licensed stamp paper vendor.
Key points of stamp paper for HUF deed/affidavit/Declaration
Purchaser name: The responsibility for purchasing stamp paper for HUF deed primarily lies with the Karta.
Description of document: In an HUF Deed, declarations and affidavits pertaining to the HUF are primarily made by the ‘Karta’. Therefore, ‘Article 4’ of the Stamp Paper schedule is utilized for an HUF Deed.
First/Second Party: The First Party has been designated as the ‘Karta’, whereas no specific name is mentioned for the Second Party on the stamp paper of the HUF deed.
Stamp duty for HUF deed: A standard non-judicial stamp paper for HUF deed of ₹100 can be purchased in India. This is considered legally valid. The amount paid to purchase stamp paper constitutes a tax paid to the government. The use of stamp paper is absolutely indispensable for ensuring the legal validity of HUF deeds/affidavits/declarations.
HUF Deed Format: The HUF deed format incorporates details regarding the Karta, family members, and coparceners, as well as the rules, terms, conditions, rights, and assets applicable under Hindu Law, along with other relevant information.
Notarization: A non-governmental individual appointed by the central or state government certifies and verifies a stamp paper and an HUF deed by affixing their signature and seal. This process is known as notarization. Notarized documents are required in government offices, banks, and other similar institutions.
Requirement: Under HUF registration in India, obtaining a PAN card and opening a separate bank account for an HUF requires a notarized legal HUF deed executed on stamp paper worth ₹100.
Process step-by-step
- Draft a legal HUF deed/affidavit/declaration.
- Purchase a stamp paper for HUF deed worth ₹100.
- Sign the HUF deed and stamp paper by the Karta or all coparceners.
- Get the document notarized to have it authenticated and verified.
Conclusion
With the exception of property-related matters, stamp paper for HUF deed from any state may be used. This is also applicable for GST registration and income tax purposes. After preparing the HUF deed format, you can purchase a ₹100 stamp paper from any state, get it notarized, and then apply for a PAN card for the HUF and open a bank account.
Advice
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