HUF Formation declaration / Affidavit for PAN application
A Hindu undivided family or HUF is neither the creation of law nor of contract. The membership of a Hindu undivided family normally arises from birth. The only exceptions are in the case of adoption or marriage, when a stranger may become a HUF member. There is nothing like an HUF deed, as the HUF comes into existence the moment you give birth to a child, in the eyes of Income tax law. (However, as per Hindu Laws, an HUF automatically comes into existence when a person gets married.) Affidavit/declaration for HUF is required for getting PAN .
A HUF is a separate entity for taxation under the provisions of the Income Tax Act, 1961, and can have a separate PAN (Permanent Account Number/Tax Identification Number). In order for an HUF to exist on Income Tax records, it must have assets and income from the assets. For taxation purposes, a new HUF must have two coparceners.
Key characteristics of HUF include:
- Separate entity: HUF is considered a separate taxpayer, distinct from its individual members.
- Tax benefits: HUF can avail of various tax deductions and exemptions, such as those under Section 80C of the Income Tax Act.
- Membership: Typically, members of a HUF are related by blood, marriage, or adoption.
- Karta: The head of the HUF, usually the eldest male member, is known as the Karta.
Who can be a Karta?
The person who manages the affairs of the family is known as the Karta. Generally, the senior-most member of the family acts as Karta. However, a junior member can also act as Karta with the consent of all other members.
Who can be a coparcener?
Those males & females who are within 4 degrees in lineal descent from the common male ancestor can be a coparcener. However, the wife cannot be a coparcener but she can be a member. The coparcener must be a member of the family, but a member of the family need not be a coparcener.
How to create HUF?
An affidavit or declaration is required for PAN application and opening a separate bank account in the name of the HUF. Below is the format of Affidavit/Declaration For Huf:
AFFIDAVIT/DECLARATION FOR HUF
I, __________________ (Name of Karta), son of ________________ (Father’s name of Karta), aged ___________ years, residing at ______________ (Address of Karta) and as Karta of my Hindu Undivided Family (HUF), affirm on oath and declare as under:
1. That I am Karta of our HUF which is known as ______________ (Name of HUF).
2. That I received on behalf of the HUF a gift of Rs. ___________ by way of Cash/Cheque from my relative/Friend ______________________________ (name of relative/friend of karta of HUF) on _______________ this formed the corpus of the HUF.
3. That as of today, the names of coparceners and members (including the name of Karta) of our above-said HUF are as under:
| Sr. No. | Name | Status | Relation with Karta | Signature |
|---|---|---|---|---|
| 1 | Name of Karta | Coparcener (Karta) | ||
| 2 | Spouse of Karta | Member | ||
| 3 | Child of Karta | Coparcener |
That the above-said HUF has been in existence since _____________ (Marriage Date of Karta).
____________
Place: ___________ (Sign of Karta)
Date: ___________ Deponent
VERIFICATION
I, ___________ (Name of Karta), son of __________________ (Father’s name of Karta), hereby verify that, to the best of my knowledge, the above-mentioned contents of this affidavit are true and correct, and nothing has been hidden therefrom.
____________
(Sign of Karta)
Deponent
#Format of HUF Deed #Affidavit/Declaration for Huf #HUF formation #Affidavit for HUF
PS: HUF cannot open a Public Provident Fund (PPF) account.
