HUF (Hindu Undivided Family): Formation & Tax Benefits
S
Statura Team
A Hindu Undivided Family (HUF) is treated as a separate taxpayer under Indian law, with its own PAN and basic exemption. For many families, it is a legitimate way to reduce overall tax.
How an HUF Works
An HUF is formed by a family with a common ancestor. It is managed by a Karta and can own assets, run a business, and earn income separately from its members.
Tax Benefits
- Separate basic exemption limit and slab benefits.
- Income-splitting opportunities within the family.
- Ability to hold ancestral property and investments.
Compliance
An HUF needs its own PAN, bank account, and files its own income tax return. A HUF deed documents its formation.
Statura sets up HUFs and provides ongoing tax filing and planning to optimise family tax.
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