Declaration for HUF pan card and bank account

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HUF Formation declaration / Affidavit for PAN application 

Deed for HUF Formation

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 an adoption or a marriage when a stranger may become a HUF member. There is nothing like HUF deed, as HUF is  comes into existence the moment you give birth to a child, In the eyes of Income tax law. (However as per Hindu Laws HUF automatically comes into existence when a person gets married.) 

A HUF is a separate entity for taxation under the provisions of the Income Tax Act, 1961 and HUF can have separate PAN (Permanent account number / Tax identification number). In order for an HUF to exist on Income tax records, HUF must have assets and have income from the assets. For taxation purpose 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?
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 the all other members.

Who can be a coparcener?
Those males & females who are within 4 degrees in lineal descendent from the common male ancestor can be a coparcener, however wife can not 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?
Affidavit or declaration is required for PAN application and opening separate bank account in the name of HUF. Format of HUF declaration is as under:

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 gift of Rs. ___________ by way of Cash/Cheque from my relative/Friend ______________________________ (name of relative/friend of karta of HUF) on dt. _______________ this formed the corpus of the HUF.

3.That as on today, name of coparceners and member (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 is 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 as per my best of my knowledge above mentioned contents of this affidavit are true and correct and nothing was hidden therefrom.


____________
(Sign of Karta)
Deponent

#Format of HUF Deed #HUF Declaration #HUF formation #Affidavit for HUF

PS: HUF can not open public provident fund (PPF) account 

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