H.U.F.

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Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2011 What is the proces of Registering H.U.F. and what are its benefits from Tax point of view ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 March 2011 HUF does not require any registration under any act. Only PAN No Application is required to be made in casde you want to file the return of income of the HUF.

You may plan to earn extra tax free income as HUF is also allowed the threshold limit of Rs 1.60 lacs like an Individual assessee.

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2011 So if in a family of 4 persons two are earning and if HUF is created, then instead of filing return of only those 2 persons, we can file a return under HUF and can get the benefit of 4 persons' minimum threshold limit. Is that so ?

Querist : Anonymous

Querist : Anonymous (Querist)

11 March 2011 Also I hd heard that there remains one "Karta" in HUF. If you are saying that there is no registration process then how "Karta" will be registered somewhere ?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

11 March 2011 1. HUF -means Hindu Undivided Family.
2. To understand the concept of HUF, we must start with our own family.
3. In a family Grand father, Grand mother, Father, uncle, aunt, brothers, sisters all are members. Traditionally senior most male member is HANDLING THE AFFAIRS OF THE FAMILY, SO HE IS KNOWN AS KARTA.
4. No registration is required as such for becoming a karta or as a karta.
5. Example of a family-
Ram-45, Sita -40, Lav -14 Kush-20
Ram is karta.
In the above family except Lav, if all the 3 major members are having taxable income , 3 files can be created for them.
For HUF one more file can be made in which Ram will be karta. as such the family may have 4 files as such.

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2011 If we want to bill third party on the name of HUF, what is the process of getting Service Tax No. etc ?

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