Creation of huf

To create a HUF, 3 things are required i.e.

Step 1: Create HUF Deed

Step 2: Apply for HUF PAN Card

Step 3: Open Bank Account of HUF

The 1st Step in creating a HUF is to create the HUF Deed. The HUF Deed is a written formal document on a Stamp Paper stating the names of the Karta and the Co-parceners (Members) of the HUF. The eldest male member of the HUF becomes the Karta of the HUF.

A declaration is also provided by each member of the family where they declare the name of Karta and also state that –

1. Karta has the authority of the accounts vested in his hand
2. That the members are the only members of the HUF
3. The Karta holds the right to govern all the transactions of the HUF accounts on behalf of the members.

The names of the members of the HUF and the name of the HUF are also required to be stated in the HUF Deed at the time of creation of HUF. The name of the HUF is usually the name of the Karta followed by the word HUF. For eg: If the Karta of the HUF is Vishal Goel, the name of his HUF would be Vishal Goel HUF.

Hello,
If HUF received gift from its member then it will not taxable...