Hindu Undivided Family (HUF) is a unique type of business entity. Any person born into the family (boy or girl) up to the next coming three generations is a part of the HUF. These members are the co-parceners. The head of such a Joint Family Business is the eldest member of the family, the “Karta”. He is the main person responsible for the business and the finances.
A HUF comes into existence automatically after the marriage of an Individual and birth of 1st child and only a HUF creation deed on a stamp paper is required to recognize it as HUF for the purposes of Income Tax Act 1961. Consequently, a separate PAN card should be obtained for the HUF and a separate bank account should be opened in the name of the HUF.
- Income from House Property
- Income from Other Sources
- Capital Gains
- Profits and Gains of Business or Profession
Since HUF is an artificial person it cannot earn income from salary