HUF Registration — Form a Hindu Undivided Family and Get Its PAN
A Hindu Undivided Family (HUF) is a separate taxpayer with its own PAN, bank account and basic exemption limit. There is no government register for an HUF. In practice, “registration” means a clear HUF declaration, a PAN in the family’s name and a separate bank account, and we handle all three.
What it is
A Hindu Undivided Family is a family unit made up of people descended from a common ancestor, together with their wives and daughters. Hindu law creates it, so HUF registration is really a matter of records. The senior member who manages its affairs is the Karta. The others are coparceners (who have a birthright in the family property) and members.
Income-tax law treats the HUF as a “person”, separate from the Karta and the members. It files its own return and holds its own investments. From 1 April 2026 the Income-tax Act, 2025 governs tax year 2026-27 onwards, and the HUF applies for PAN in Form 94 under the Income-tax Rules, 2026, which replaced the old Form 49A.
Who it applies to
Families with ancestral property
Say your grandfather’s house in Ballabgarh passed to your father and his sons as joint family property. An HUF may already exist in law. A PAN and a bank account bring it on record.
A couple with a child
An HUF needs at least two members from one family. A couple’s HUF is usually treated as starting once a child is born, so tell us your family position and we will advise.
Business families
A family trade or rental property held by the HUF is taxed in the HUF’s hands, not added to the Karta’s income.
Why it matters
Claim a second basic exemption
For FY 2025-26 the HUF’s income is nil-rated up to ₹4 lakh under the new regime, or ₹2.5 lakh under the old regime. That limit sits on top of each member’s own limit, a useful piece of family tax planning.
Claim deductions of its own
Under the old regime, the HUF claims section 80C and 80D deductions of its own, separate from the Karta’s personal claims.
Keep family and personal assets apart
A deed, a PAN and a separate bank account show what belongs to the family and what belongs to each person. Partition gets far easier.
Documents required
From the Karta
- PAN and Aadhaar
- Proof of identity, address and date of birth
- Affidavit declaring the HUF, attested by a Notary, Oath Commissioner or Judicial Magistrate
About the members
- Names, father’s names and addresses of all coparceners
- Aadhaar or PAN of each coparcener
- Relationship of each member to the Karta
For the family’s records
- HUF deed (declaration) naming the Karta, coparceners and members
- Details of the initial corpus and its source
- Documents of any ancestral property
How it works
Map the family for your HUF registration
We map who is the Karta, who are coparceners and who are members.
Draft the HUF deed and the Karta’s affidavit
The deed records the formation date, members and corpus. The affidavit lists all coparceners and supports the PAN application.
Apply for the HUF’s PAN in Form 94
We file the application with the Karta’s documents. The PAN is issued in the HUF’s name, for example “Ramesh Kumar HUF”.
Open the HUF bank account
The Karta operates it. Every rupee of HUF income and every HUF investment should pass through this account and no other.
Build the corpus and file returns
We advise on what can go in without triggering clubbing or gift tax. Then we file the HUF’s income tax return every year.
How the HUF is taxed
| Point | Rule for an HUF |
|---|---|
| Basic exemption (FY 2025-26) | ₹4 lakh under the new regime; ₹2.5 lakh under the old regime |
| Section 87A rebate | Not available; it is only for resident individuals |
| ITR form | ITR-2 (no business), ITR-3 (business), ITR-4 (presumptive income, total income up to ₹50 lakh). ITR-1 is never available. |
| Gifts from members | Not taxed in the HUF, but income from the gifted asset is clubbed with the member who gave it |
| Gifts from non-members | Taxable in the HUF’s hands if they exceed ₹50,000 in aggregate in a year |
Here is the catch most families miss. If a member converts personal property into HUF property, or transfers it without adequate consideration, the income from it is taxed in that member’s hands. This was section 64(2) of the 1961 Act and is section 99(2) of the Income-tax Act, 2025.
Picture a Faridabad shopkeeper who moves his own fixed deposits into a new HUF. The interest is still taxed in his hands.
So where does a genuine corpus come from? Ancestral property, an inheritance, assets left to the HUF under a will, and gifts within the limits above. We help you document each source, including a registered gift deed where property is involved.
Timelines
Affidavit before the PAN
The Karta’s attested affidavit must be ready before the PAN application is filed. We prepare the deed and affidavit together so the application goes in complete.
ITR due 31 July or 31 August
For FY 2025-26, an HUF without business income files by 31 July. With non-audit business income, the date is 31 August. Tax-audit cases have until 21 November 2026.
Belated return by 31 December
A missed return for FY 2025-26 can still be filed until 31 December 2026, with a late fee and interest.
What happens if the HUF is set up wrongly
Income gets clubbed back
Move the Karta’s own money across and the income is taxed in the Karta’s hands anyway.
Gifts become taxable
Gifts from people who are not HUF members are taxed in the HUF’s hands once they cross ₹50,000 in the year.
Disputes at partition
Income-tax law recognises only a total partition of an HUF, not a partial one. Without clear records of what the HUF owns, a split becomes a long argument.
Frequently asked questions
Is HUF registration mandatory with any government office?
No, there is no government registration for an HUF. It arises under Hindu law when a family exists. For tax purposes you need a PAN in the HUF’s name, applied for in Form 94 from 1 April 2026, and a separate bank account. A written HUF deed is not legally required, but it is the best evidence of who the members are and where the corpus came from. We prepare all three together.
Who can form an HUF?
Hindus, Jains, Sikhs and Buddhists can form an HUF. You need at least two members from one family, such as a parent and child, or a couple with a child. The senior-most coparcener normally acts as Karta and signs the HUF’s documents and returns. Members of other religions cannot form an HUF under income-tax law. If your family qualifies, the paperwork is simple.
Can a daughter be a coparcener or the Karta?
Yes. Since the Hindu Succession (Amendment) Act, 2005, a daughter is a coparcener by birth with the same rights and liabilities as a son. In 2020 the Supreme Court held in Vineeta Sharma v. Rakesh Sharma that this applies whether or not her father was alive on 9 September 2005. A daughter who is the senior-most coparcener can also be the Karta. We record this correctly in the deed.
How much tax does an HUF save?
An HUF gets its own basic exemption: ₹4 lakh under the new regime or ₹2.5 lakh under the old regime for FY 2025-26. Under the old regime it can also claim up to ₹1.5 lakh under section 80C. It cannot claim the section 87A rebate. The real saving depends on genuine HUF income, such as rent from family property. We work out the figures before you start.
Can I gift my own money to my HUF?
You can, but the income from it will be taxed in your own hands. Section 64(2) of the 1961 Act, now section 99(2) of the Income-tax Act, 2025, clubs the income from property a member transfers to the HUF without adequate consideration. The gift itself is not taxed in the HUF. We help you choose better sources for the corpus.
Are gifts from relatives tax-free for an HUF?
Only gifts from HUF members are treated as gifts from relatives. Gifts from anyone else, including friends or relatives outside the HUF, are taxable in the HUF’s hands if the total crosses ₹50,000 in a year. Assets received under a will or by inheritance are not taxed. We check each proposed gift before it goes in, so the HUF’s books stay clean.
Which ITR form does an HUF file?
An HUF files ITR-2 if it has no business income, ITR-3 if it has business income, and ITR-4 if it opts for presumptive income with total income up to ₹50 lakh. ITR-1 is never available to an HUF. The Karta signs the return. For FY 2025-26 the due date is 31 July, or 31 August with non-audit business income. We file it alongside the family’s other returns.
Can an HUF be closed?
Yes, by a total partition among the members. Income-tax law recognises only a total partition, where all the HUF’s property is divided, not a partial one. Record it in a written deed and inform the Assessing Officer, so the HUF’s tax file can be closed. After that, each member is taxed on their own share. We draft the partition papers and handle the tax side.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Third-party costs: the PAN fee, stamp duty on the affidavit and deed at your state’s rates, and notary charges.
Ready to begin?
Tell us who is in your family and what the HUF will hold, and we will set it up with a deed, PAN and bank account that stand up later.