Hindu Undivided Family (HUF) has separate PAN card and its income is separately taxed from the Karta and members of HUF. A HUF can make investments and insurance and claim deduction on its own account separately from Karta and its members. Karta and members of HUF can make investments and insurance apart from HUF and claim deduction on its own account separately from HUF.
One of the major advantages of HUF Registration is, it is considered as separate legal entity and thus the entire income of the family can be split and ultimately results in reducing overall tax liability. Another advantage of HUF is its income is taxable as per the slab rate amended every year as per Finance Act, resulting in the benefit of reduced tax as per the slab rate.
Hindu Undivided Family (HUF
) Registration is done through executing a HUF Deed or also known as HUF Trust Deed. This HUF deed carries the detail of governing structure and management of the HUF. All the male are considered as coparcener and female are considered as member. Difference between coparcener and member is, coparcener are entitled for share in family and member are entitled for maintenance rights.
Hindu Undivided Family (HUF) is governed by Hindu Succession (Amendment) Act 2005, this amendment act contains rights and liabilities of a daughter member. HUF may have several branches depending upon the size of the family, it is immaterial whether branches contain property or not.
Head of Hindu Undivided Family (HUF) known as ‘Karta’ has all the rights to sign any document on behalf of HUF, a woman can be a co-partner in HUF if her husband is karta and any new member automatically become part of HUF at the time of marriage. Tax savings in the form of life insurance or health insurance or other tax saving such as Post office schemes can be availed and ultimately results in reducing tax liability.
We at ReturnFilings.Com will understand the purpose of your proposed Hindu Undivided Family business and thereafter will provide you analysis of HUF Registration as compared to other form of business covering almost all scenarios to carry out business effectively and efficiently. We at ReturnFilings.Com will apply for PAN on behalf of your HUF and thereafter provide registration under GST to carry out the trade and service activities, Obtaining Import Export Code (IEC) to carry out import or export activities, obtaining FSSAI Licence from Food Supply and Standards Authority of India to carry out merchandising in food related activities if required depending upon case to case basis, obtaining Udyog Aadhaar under Micro Small and Medium Enterprises (MSME) in order to avail MSME benefits, Obtaining TAN (Tax Deduction and Collection Account Number) in order to ease of business transactions.
Compliance are never-ending process, the rules and regulations use to change regularly; we keep a track on recent updates and notification and advice the same on a real-time basis to all concerned. Even after obtaining registration under various laws, we at ReturnFilings.Com also fulfill various compliance on your behalf in order to ensure proper and smooth functioning of business and to avoid unnecessary interest or penalty for non-compliance. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com
will take care of all your compliance need.