Family certificate of UHF

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Atul (Querist)
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30 November 2010 I need to purchase HUF flat and applied for a loan. Now bank asked me to provide-
1) Family certificate of HUF (which should mention Members name, major, minor, karta etc)
2) Income tax return

Would you please suggest me more, who will make family certificate, what it should contain and what are necessary documents are required in support of that.

Thanks in advance !!

Atul

Atul (Querist)
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30 November 2010 Bank told this needs to made by CA. Please answer about my query.

Thanks

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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24 July 2024 In India, a Hindu Undivided Family (HUF) is a legal entity that consists of a family of persons who are lineally descended from a common ancestor and includes their wives and unmarried daughters. Here's how you can proceed with obtaining the required documents for purchasing a flat under HUF and applying for a loan:

### 1. Family Certificate of HUF:

**Who Can Issue the Family Certificate:**
- Typically, the Karta (the head of the HUF) is responsible for providing a family certificate. The Karta can issue a declaration certifying the composition of the HUF, including the names of all its members, their status (major, minor), and the Karta's details.
- Alternatively, in some states, the Talathi (village accountant) or the local revenue authorities may also issue such certificates upon verification.

**Contents of the Family Certificate:**
- **Names of Members:** List the names of all members of the HUF including the Karta, other coparceners (members), and minors.
- **Status:** Clearly mention the status of each member (major or minor).
- **Karta Details:** Provide details of the Karta of the HUF.
- **Declaration:** Include a declaration stating that the information provided is true and correct to the best of their knowledge.

**Supporting Documents Required:**
- Birth certificates or school leaving certificates to establish the age of minor members.
- Identity proofs such as Aadhar card, PAN card, etc., for all adult members.
- Address proof of the Karta and other members.

### 2. Income Tax Return:

- The HUF should file its income tax return annually. The Income Tax Return (ITR) for HUF should be filed using Form ITR-2.
- The bank requires the ITR to verify the income of the HUF and assess its repayment capacity for the loan.

**Additional Requirements:**
- **Legal Documentation:** Ensure all legal documents related to the property purchase are in order, including the sale deed, NOC from society (if applicable), and title clearance documents.
- **Loan Application Form:** Complete the bank's loan application form along with all required documents.
- **Other Financial Documents:** Bank statements, balance sheets (if any), and any other financial documents that demonstrate the financial health of the HUF.

**Procedure:**
- Contact your local revenue office or Talathi to issue the family certificate. Provide all necessary documents and information.
- File the HUF's income tax return for the previous financial year, if not already filed, and obtain a copy of the ITR acknowledgment.
- Submit these documents along with your loan application form to the bank.

It's advisable to consult with a chartered accountant or legal advisor to ensure all documents are correctly prepared and in compliance with the requirements of the bank and legal authorities. This will help streamline the process and avoid any delays in obtaining your loan for purchasing the HUF flat.

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