This document discusses Hindu Undivided Family (HUF) accounts. It explains that an HUF is a family business structure under Hindu law consisting of male family members. The key points are: HUFs can be formed upon marriage and require a Karta (head of family), who is normally the eldest male member. An HUF account allows income from all family members to be deposited and enjoys tax benefits. Documents needed to open an HUF account include PAN cards and identification documents for the Karta.

1. Hindu Undivided Family
PRESENTED BY:
KHANGAR JANGID
KAILASH KUMAR
KIRTI KUMARI
KAVITA CHOYAL
LAKHWINDER BRAR
MULAYAM SINGH

2. AGENDA
 What is an HUF?
 Features of HUF account:-
 Documents required for opening HUF
account:-
 Who is Karta?
 Rights of the members
 Junior Member Can Become Karta Of
HUF!
 Tax benefits on a HUF account:-

3. WHAT IS AN HUF?
As the name suggests, an HUF is a family of
Hindus. However, even Buddhists, Jains and
Sikhs are regarded as Hindus, and can,
therefore, set up HUFs. The concept of an
HUF has basically evolved from ancient Hindu
law.

4. FEATURES OF HUF ACCOUNT:-
 Every member of the family can deposit
their income in the common corpus
 Single person’s authority while
participation from entire family
 Tax benefits on deposits under various
sections
 Corpus can be divided only on agreement
of every coparcener of the family

5. DOCUMENTS REQUIRED FOR OPENING HUF
ACCOUNT:-
 HUF will have a unique PAN card; this
PAN card along with the PAN of Karta
should be produced.
 A declaration form will be provided where
every member has to make a signature
stating the name of Karta and declare
 Residential proof of Karta
 Identification proof of Karta

6. FORMATION OF HUF
 The most frequently asked question about HUF
is: How does it come into being? To form an
HUF, One has to do is Get Married. The HUF
gets created as soon as a person complete the
seven (or four, whatever) circles round the holy
fire and become husband and Wife.
 There have to be a minimum of two people to
constitute a family. The husband and wife
together make up a family. They don't have to
wait till they have a baby to constitute their HUF

7. WHO IS KARTA?
 Karta of a HUF is the senior most male
member of the family and in financial
terms he can also be called manager of
the family
 The person who manages the affairs of
the family is known as the
karta. Normally, the senior- most member
of the family acts as karta. However, a
junior male member can also act as karta
with the consent of the other members

8. COPARCENERS
This is what all the male members are referred
to as.
 A Hindu coparcenary includes the sons,
grandsons and great-grandsons of the holder
of the joint family property. By virtue of their
birth, they acquire an interest in the property.
 Members
 The female members are simply called
members

9. CAN A FEMALE BE THE KARTA?
The answer can't be No in the
light of the amendment in the
Hindu succession Act in 2005.An
unmarried daughter, in the
unfortunate event of her father
passing away, will become the
Karta of the HUF if she has no
brother.

10. RIGHTS OF THE MEMBERS
The difference between a coparcener and a
member is that a coparcener can demand
partition of an HUF. This is by way of
distribution of HUF property among the
coparceners. While each coparcener would
then be entitled to a share of the property,
the members would be entitled to receive
maintenance from the HUF. The karta
generally manages the family property,
which is regarded as the joint property of
all the coparceners.

11. JUNIOR MEMBER CAN BECOME KARTA OF HUF!
 Answer:- It is presumption under Hindu Law, that senior
most members can be Karta of the HUF. His position under
the law is unchallengeable. He is manager of the assets and
income of the HUF. It has been held in Narendrakumar J
Modi v. CIT 1976 S.C. 1953 that in case there is agreement
among members of HUF, a junior member can become
Karta of the HUF.

12. WHICH INCOME IS REGARDED AS HUF INCOME
 Since the HUF is a separate entity, it can
earn income from all the above except
income from salary.
 All income that arises on the investment
of the HUF's funds and utilization of its
assets is regarded as income and is
separately assessed and taxed.

13. TAX BENEFITS ON A HUF ACCOUNT:-
 Since the account is equivalent to an individual’s account
there are various tax benefits and a few of them are
mentioned below.
 According to IT act, tax rebates and deductions can be
availed under sections 80C, 88 and 80L for HUF account.
 Gifts collected up to a worth of Rs 50,000 will be tax free
 Corpus can be used for investment in tax free money
instruments.