Answer

1. F

   Facts

   A HUF is a separate taxpayer under the Income Tax Act, it gets its own PAN, its own ₹2.5L basic exemption, its own Sec 123, Income-tax Act 2025 (old Sec 80C) deduction of ₹1.5L, and its own tax slabs. A married Hindu man (Karta) automatically creates a HUF the moment he has a family. Applies to Hindus, Jains, Sikhs, and Buddhists. Not available to Christians and Muslims.

2. P

   Provisions and law

   • Hindu Succession Act 1956 | Income Tax Act 1961, Sec 2(31)
3. A

   Analysis

   The HUF can own property, earn income (rent, business, investments), and file its own ITR. Income earned by the HUF is taxed in the HUF's hands, not in the individual member's hands.

4. C

   Conclusion

   1. 1Marriage certificate (evidence of family creation)
   2. 2HUF Declaration Deed on stamp paper (₹100-500 by state)
   3. 3Apply for HUF PAN, Form 93 / 94 (old Form 49A), PAN card within 15 days
   4. 4Open HUF bank account in name "Sharma HUF"
   5. 5Capital contribution to HUF, ancestral property or gift from relatives

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.