HUF - Hindu Undivided Family, it is a family of Hindus. like Jains, Buddhists and Sikhs…,
HUF is a legal term related to the Hindu Marriage Act. Due to the development of Indian Legal System, of late, the female members are also given the right of share to the property in the HUF. the expression HUF finds reference in the provisions of the income tax act but the expression is not defined in the act.
The only exceptions are in the case of an adoption or a marriage when a stranger may become a HUF member.
Head of the family (Kartha) takes all decision regarding financial and economical aspects of family.
All members live under one roof.
Share the same Kitchen
Three generations living together (though often two or more brothers live together, or Father and Son live together or all the descendants of male live together).
A common place of Worship
All decisions are made by the male head of the family- Patrilineal, Patriarchal.
No division of property until the death of the Karta (head of family or older male person).
Income earned by the HUF and expenses incurred by the HUF are of the whole family and not of any specific individual.All Incomes are also taxed in the hands of the HUF and not any specific individual.
1.Duly filled Trading/Trading & Demat/Commodity form with photograph of Karta affixed and signed across.
2.PAN Card copy of the HUF.
3.PAN Card copy & Address Proof of Karta.
4.Bank Passbook/Bank Statement of HUF indicating its existence.
5.Declaration to be given by Karta & all major co parceners of the HUF.
6.HUF Declaration for Demat account.
Advantage: Tax benefits on various sections, Gifts collected up to a worth of Rs 50,000 will be tax free and Every member of the family can deposit their income in the common corpus