What is the Process of Forming a Hindu Undivided Family?
A Hindu Undivided Family (HUF) is a unique entity recognized under Indian law, particularly in the realm of personal and tax laws. It’s a structure that allows a family to come together and function as a single unit for managing wealth and property. The primary benefit of forming an HUF is tax savings, but it also serves as an effective way to manage and preserve family assets. In this blog, we will explore the process of forming an HUF, the requirements, and the benefits it offers. Understanding HUF: A Brief Overview What is an HUF? An HUF is a legal entity that consists of all persons lineally descended from a common ancestor, including their wives and unmarried daughters. The entity is governed by Hindu law and is available to Hindus, Jains, Sikhs, and Buddhists. The head of the HUF is known as the "Karta," who manages the affairs of the family, while the other members are known as "coparceners." Purpose of an HUF The primary reason for forming an HUF is to creat...