HUF – Hindu Undivided Family
The term “Hindu Undivided Family” is used for business community or a joint family consists of all lineally descended from a common ancestor ie. a group of members of the same family. Its culture transcending its way to carve a business group which is taxed and operated differently.
In HUF all the family member do become member and the head of the family (“father”, or the “senior member”) do act as KARTA of the HUF who manages the property belonging to Joint Family. This means that a single person cannot constitute it. There has to be minimum two members to form this.
Many people create a pan card in the name of Hindu Undivided Family because, income in Hindu Undivided Family name is treated as individual income.
Leave a Reply