TaxSavvy

Estate planning · HUF

What is a HUF and who can create one

Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.

Find

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.

Provisions

Hindu Succession Act 1956 | Income Tax Act 1961, Sec 2(31)

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.

Close

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

Connect now

A Savvy replies in minutes.

Fixed price before you pay. Your Savvy is paid only after you accept the work.

Connect nowPay and start: Tax planning, ₹999

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

People also ask