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HUF – An tax saving option

Today we discuss on HUF – An tax saving option, HUF state for the Hindu undivided family, How to create the HUF, HUF creation date in the income tax, how to start the HUF, Income tax benefits of an HUF.

Formation of HUF –

Pls find below the formation of HUF as per Hindu law and income tax

HUF creation in Hindu Law-

HUF is created by the LAW in HUF will come into the existence in Hindu law after the man getting married.

Note – A husband and wife will validly constitute an HUF, there is no necessity of the   child to create an HUF as per the Hindu law.

HUF creation in Income Tax-

HUF will come into the existence after getting the PAN card of the HUF, a person can apply for the HUF PAN Card after getting married.  but to get the income tax slab benefits it is necessary to getting birth to the child.

Number of member for formation of HUF ?

There should be minimum 2 member for the formation of HUF one of them should be be the coparcener, but for getting the slab benefits in income tax there should be 2 coparcener.

How to get the PAN Card of HUF?

You can get the pan card of HUF by giving the HUF Affidavit to the

How to get the HUF Corpus?

Gift is the best way to create the first corpus of an HUF, Gift from the relative is exempt from the income tax.

What is the Income of HUF?

HUF can take the gift, Gift from the relative is exempt. (Gift deed is attached in annexure B)

An HUF can invest the money in share market and earned the income.

An HUF can partner in partnership Firm

An HUF can formed a proprietorship concern

 What are benefits of HUF in income tax?

Creation of HUF is a good tool for the income tax planning. In Income tax additional slab benefits is given to the HUF. Click here to know the Slab rate of HUF.

Can an HUF take tax registration number like VAT,CST, Service tax?

Yes. An HUF can  take tax registration number like VAT,CST, Service tax


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