February 06 , 2013
1) Hindu Undivided Family (HUF) is typically used when there is a business or property that belongs to the family as whole, rather than individuals
2) Husband and wife can have an HUF, with or without children. So can two siblings, one of whom is male. A father and son can also have an HUF
3) HUF is operated by the Karta, who is the eldest male member.
1) You can obtain a PAN card for the HUF in almost the same way you obtain your personal PAN card
2) Apply online at NSDL site (https://tin.tin.nsdl.com/pan/servlet/NewPanApp) and pay the fee through credit card
3) Take a printout, sign (Karta), and send along with proof of identity and address of the Karta, to NSDL
1) Creating a stamp is simple in any stationery shop, you can create a stamp: For HUF Karta
1) Once you have the PAN card and stamp, you can open an HUF savings bank account in the same way you open your personal account
1) Make sure all incomes (gifts, property, revenues, etc) into the HUF are accompanied by a letter or invoice. This will avoid tax trouble later
2) HUF can also invest in mutual funds, shares and bonds. It can also carry out tax savings just as individuals can
3) Karta needs to sign and stamp on all business dealings of the HUF. He is also responsible for tax filings, etc.