Hindu Undivided Family (HUF): Legal Tax Savings for Salaried Individuals & Business Owners!
Stop overpaying taxes! HUF can help you save more legally. Grow Wealth & Protect your Family. I Rahul Patil is here to guide you – Get Free consultation Today!
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HUF REGISTRATION
INCLUDED:-
- HUF Deed
- HUF PAN registration
- Registration on Income Tax Portal
- Free Assistance
₹ 6999/-
₹ 2999/- Only
What is Hindu Undivided Family (HUF)?
HUF (Hindu Undivided Family) is a significant concept under the Income Tax Act, 1961. It is treated as a separate tax entity, distinct from its members. This means that an HUF can earn income, incur expenses, and file its own tax returns.
Who are Eligible for HUF?
Formed Only by Hindus, Sikhs, Jains & Buddhists
Any Investors/ traders belong to given religion
Any Salaried Individual belong to given religion
Any Business Owner belong to given religion
What are the Benifits of HUF?
Benefits in Investment Income
-
Get Additional Tax Exemption of Rs. 1,25,000 on long-term capital gain
For example -Imagine you buy 1000 shares of a company at ₹100 each ( ₹1,00,000 total) in 2022. By 2024, value doubles to ₹200 per share, so if you sell for ₹2,00,000, making a profit of ₹1,00,000. Normally, you'd owe 12.5% capital gain Tax - ₹12,500 to the government. But with an HUF you benefit from additional tax exemption upto ₹1,25,000, means you'd pay Zero tax in this profit. More the Income, More Tax Benefits! -
Additional Basic Exemption
of Rs. 2,50,000 on
short-term capital gain
For Example - Imagine you buy 1000 shares of a company at ₹100 each ( ₹1,00,000 total) in january 2024 and by September 2024 (less than 1 year) value doubles to ₹200 per share, so if you sell for ₹2,00,000, making a profit of
₹1,00,000. Normally, you'd owe 20% capital gain Tax - ₹20,000 to the government. But with an HUF you benefit from additional tax exemption upto ₹2,50,000, means you'd pay Zero tax in this profit.
More the Income, More Tax Benefits! - Get Multiple IPO Application advantage - apart from Self & Spouse, Separate IPO application through HUF
Benefits in Business Income
- Consider your Business as Separate legal entity & Separate limit under IT act - section 44AD/44ADA presumptive taxation limit. To know more about Presumptive taxation fill the free personalised expert advice form.
Benefits in Wealth Management
-
Inheritance of property through a will in the name of HUF help to reduce taxes.
For Example -
Suppose you inherit a house property from your father, earning ₹3,00,000 annually (₹25,000 monthly) in rental income. If you are in the 30% of Income tax slab, you would pay 30% tax on this rental income after the standard deduction, amounting to ₹63,000. However, if your father transfers this property to an HUF through a will, your rental income would be tax-free. In short, transferring property to an HUF can save substantial tax on rental income, preserving more wealth for your family.
Benefits in Income Tax Deduction
- Additional tax deduction under section 80C limit of Rs. 1,50,000
- Separate Medical Expences benefit under section 80D
HUF Registration Process:-
Step 1: Preparing HUF Affidavit( HUF Deed )
Draft an HUF Affidavit, also known as the HUF Deed, to formally declare the creation of the Hindu Undivided Family. This document should specify the Karta (head of the HUF), list family members, and outline the purpose of forming the HUF. This deed is important for legal recognition and is required to open an HUF bank account/DEMAT account
Step 2: Application of HUF PAN CARD.
Next step is Submit an application for an HUF PAN card through the NSDL or UTI portal to establish a separate tax identity for the HUF. This PAN enables the HUF to file tax returns independently, which is crucial for managing finances and availing of tax benefits associated with HUF income.
Step 3: Post PAN Card allotment and register HUF on the income tax portal.
Once the PAN card is allotted, register the HUF on the Income Tax e-filing portal under the HUF PAN. This registration allows the HUF to file income tax returns and track tax-related activities online, facilitating easier tax compliance.
Step 4: File Income tax return.
File income tax returns for the HUF using the HUF PAN. Filing the HUF’s ITR ensures that its income, deductions, and tax liabilities are accounted for separately from individual family members, allowing the HUF to benefit from separate tax slab rates.
Step 5: The client can Open a Bank Account/DEMAT HUF Account using an Affidavit
With the help of HUF Deed, PAN, and registration, you can open an HUF bank account or Demat account. This account enables the HUF to conduct financial transactions, invest in securities, and manage family assets separately.
Get All-in-One HUF Package: From Registration to Return Filing
HUF Registration
- HUF Deed
- HUF Pan Registration
- Income Tax Portal Registration
- Free Assistance
HUF Return File
- Collect HUF Data
- Calculate Deduction
- Compute Tax Liability
- Free Assistance
HUF Registration & Return File
- HUF Deed
- HUF Pan Registration
- HUF Return File
- Free Assistance
Real Feedback from Real Clients
FAQs
Why should I register a HUF?
Registering a HUF can help your family:
- Avail tax benefits with a separate PAN and tax liability.
- Manage ancestral property and other assets systematically.
- Create a separate entity for financial and legal dealings.
What are the common mistakes to avoid when creating a HUF?
- Not maintaining proper records of HUF assets and income.
- Mixing personal and HUF accounts.
- Ignoring compliance requirements like tax filings.
Can I use the HUF for investments?
Yes! HUFs can invest in:
- Real estate, shares, mutual funds, and bonds.
- Generate income from these investments under the HUF entity, optimizing taxes.
Can a HUF be dissolved?
Yes, a HUF can be dissolved if:
- All members agree to partition the assets.
- The family structure changes due to legal separations.
How long does it take to register a HUF?
With Reliable CFO Services, HUF registration typically takes 7–10 working days, provided all necessary documents are in order.