27 April 2009
An HUF can be created by any male member of the family having a co- parancers. A co parance acer is a male member of the family who can enforce the division of the family assets. Like a father and a son. The creation of HUF is to evidenced by a deed and a bank account should be opened in the name of HUF. The HUF is treated as separate legal entity for Income tax purpose and all the tax rule which apply to an individual also apply to an HUF for example the minimum threshold limit for paying taxes, exemption from TDS rule if not beyond a particular turnover etc.
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