All we need to know about PAN card for HUF

Introduction

In terms of taxes, HUF offers certain benefits. The HUF is recognized as a separate assessable or taxable entity under both the Income Tax Act and the Wealth Tax Act. Under the Act, a HUF is acknowledged as an unique assessable entity. In this article we will discuss all about PAN cards for HUF.

What is PAN Card?

PANs are used to identify different taxpayers across the nation. A 10-digit unique identity alphanumeric number called a pan card is given to Indians, usually to those who are tax payers.

Every entity that pays taxes in India is given a special identifying number via the computer-based PAN system of identification. By using this technique, a person’s whole tax-related information is stored against a single PAN, which serves as an important key for information storage. Since this is shared throughout the nation, no two individuals in tax-paying organizations may have the same PAN.

What is HUF?

The HUF stand for Hindu Undivided Family under Hindu Law and is made up of all living individuals who share a common ancestor, as well as the wives and daughters of those individuals.

According to a section of the Income-tax Act of 1961, for the assessment purposes under the Act, the Hindu Undivided Family is considered as a “person.” HUF is an independent tax-filing entity with its own Permanent Account Number (PAN). An HUF is made up of the “karta,” who is often the oldest person or family head, and the other family members.

The HUF’s daily operations are managed by the “karta.” Children are coparceners of their father’s HUF. When a daughter marries, she continues to be a coparcener in her father’s HUF while joining her husband’s HUF. Although Jain and Sikh families can create HUFs even if they are not governed to Hindu law.

How to get an HUF PAN card?

An HUF is a separate legal entity, similar to a business or partnership. Therefore, it can submit a PAN card application on its own. Without a PAN card it wouldn’t do  any of the financial transactions that a HUF is intended to conduct.

Details for Applying for an HUF PAN Card

• The HUF’s name, or the Karta’s name (family head), followed by the “HUF”.
• Residence and location proof for HUF.
  • Karta’s Aadhaar card copy
  • Karta’s voter identification copy
  • A copy of Karta’s passport or driver’s license
  • Karta’s Ration card copy
• The corpus’s main revenue source.
• Each coparceners of the HUF must provide their name, father’s name, and address in an affidavit signed by the Karta.
• The Karta must sign the Form 49A when it is finished.

The PAN card should arrive in around 21 days after submission if the documentation is in order.

Benefits of PAN card

• Hindu Undivided Families consider a PAN card to be an important document(HUFs).
• The HUF is recognized by PAN as a legal organization with the authority to create bank accounts, purchase real estate, and engage in financial transactions among other things.
• Without a PAN card, it would be unable to perform any financial transactions, which is what a HUF is intended to do.

Conclusion

A PAN Card plays a vital role for Hindu Undivided Families (UFs). It creates the HUF as a legal financial organization with the authority to carry out financial transactions including opening bank accounts, buying real estate, and making investments.  I t is capable of filing a PAN card application on its own. It can not perform any of the financial transactions that a HUF is supposed to conduct without a PAN card. The primary benefit of opening a Hindu Undivided Family Account is that the family receives an additional PAN Card and may divide the family’s income, which can save taxes and other expanses.