HUF or Hindu Undivided Familyis defined under the Hindu Lawas a family that consists of allpersons lineally descendedfrom a common ancestor,including wives and unmarrieddaughters.What isHUF
The legal business whichis carried by themknown as jointHindu familybusiness
HUF Consists ofKarta of a HUF is the senior most male member of thefamily and in financial terms he can also be calledmanager of the familyAll male adults in the family are called Co-ParcenersOthers Member:all female members of the family are called Members
Karta1.Karta is the seniormost male memberof thefamily2.Only the Karta has the right to manage theproperty and business of the HUF.3. Karta can enterinto contract on behalf of theHUFand bind all the members to the extent oftheirshare in the property/business4. If the coparceners so desire, all the coparcenersand Karta may authorize any one ormore adult
Can a female be the Karta?The answer cant be No in the light ofthe amendment in the HS Act in2005.An unmarried daughter, in theunfortunate event of her fatherpassing away, will become the Kartaof the HUF if she has no brother.
Restriction on themembership ofwomanAccounting to lawMitakshara law ========= woman cannotDayabhag law ======== *Hindu secession act 1956 ==== after death of herhusband
Documents required for openingHUF account:-HUF will have a unique PAN card; this PAN card along with the PAN of Kartashould be produced.A declaration form will be provided where every member has to make asignature stating the name of Karta and declare.They are the only members of HUF.Karta to have sole authority over HUF accountEvery transaction on behalf of HUF account, made by each member of thefamily is governed by Karta.Residential proof of KartaIdentification proof of Karta
There are a few features of HUF account that makes itThere are a few features of HUF account that makes itdifferent from regular saving bank accounts.different from regular saving bank accounts.•Every member of the family can deposit their incomeEvery member of the family can deposit their incomein the common corpusin the common corpus•Single person’s authority while participation fromSingle person’s authority while participation fromentire familyentire family•Tax benefits on deposits under various sectionsTax benefits on deposits under various sections•Corpus can be divided only on agreement of everyCorpus can be divided only on agreement of everycoparcener of the familycoparcener of the family