How to Create a HUF Affidavit Online?

Table Of Content

• What is HUF and its benefits?
  • Health Insurance Policies
  • Investment
  • Owning a House by HUF
  • Income Tax Benefits
• Who can create a Hindu Undivided Family Account?
• What documents are required to create a HUF Affidavit?
• What should be the stamp paper value for the HUF affidavit?
• Is registration required for HUF?
• Who are the legal heirs of HUF?
• Can HUF be applied by Muslims?
• Conclusion

Section 2(31) of the Income-tax Act, 1961 henceforth referred to as “the Act” treats the Hindu Undivided Family (HUF) as a ” single person.” For the purposes of assessment under the Act, HUF is a distinct entity. A Hindu underworld family (HUF) is made up of all the individuals who are directly descended from a common ancestor, along with their wives and unmarried daughters. A Hindu family cannot form a HUF through a contract; instead, it forms naturally. Despite not being subject to Hindu law, Jain and Sikh households are recognized as HUFs under the Act. The family is required to declare to the world about their existence they need to get themselves prepared a HUF Affidavit. Like for everything it also needs an affidavit.

What is HUF and its benefits?

For the purposes of the Act’s assessment, HUF is an independent organization. A HUF, as defined by Hindu law, is a group of people who are all descended from a common ancestor and includes their spouses and unmarried daughters. A Hindu family naturally forms a HUF; one cannot form one through a contract.

The Hindu Undivided Family majorly has a lot of advantages in monetary terms. The benefits that Hindu Undivided Family enjoys are as follows:

Health Insurance Policies

According to my knowledge, Under Section 80D, you are eligible to deduct up to Rs 25,000 from your annual premiums for family health insurance. This cap, however, might not be enough to give your family adequate health care given the increase in health insurance prices. This is where HUF can help you out. For family members of the Hindu Undivided Family, you can claim an extra tax advantage of up to Rs 25,000 on health insurance premiums paid during the year. The upper limit increases to Rs 50,000 if the individual is a senior citizen.

Investment

Under Section 80C, a HUF may invest in tax-saving Fixed Deposits and Equity Linked Savings Schemes (ELSS) to receive up to Rs 1.5 lakh in tax benefits. Furthermore, even though a HUF is not permitted to create a Public Provident Fund (PPF) in its own name, it is permitted to deduct taxes on the money it deposits into each member’s PPF account.

Owning a House by HUF

A residential home that belongs to a HUF is exempt from taxes. The Hindu Undivided Family can apply for a home loan to buy a residential property and receive tax benefits under Section 80C of the Income Tax Act of up to Rs 1.5 lakh for loan repayment and up to Rs 2 lakh for interest.

Income Tax Benefits

In legal terms, a HUF is an independent body. In this case, each family member has a PAN card, and the HUF has a unique PAN card. A HUF can make money by operating its own company. It can also make investments in mutual funds and equities. The HUF also benefits from a basic tax exemption of Rs 2.5 lakh since it is a distinct legal entity. Now, picture yourself forming a HUF with your partner and your two kids. You can take advantage of an extra basic income tax exemption of Rs 2.5 lakh annually in addition to the income tax benefits you already receive on an individual basis.

Who can create a Hindu Undivided Family Account?

Only a Family member has the right to create an Account for Hindu Undivided Family. According to my knowledge, even a member who earns can also open the HUF Account. There’s a condition that if the member is not earning but as soon as he gets married it becomes compulsory for that person to earn. Also to enjoy the tax deduction luxury the couple needs to have a child. 

What documents are required to create a HUF Affidavit?

The documents to prepare the HUF Affidavit are as follows:

1. The Affidavit for HUF Pan Card copy should be self attested by the members.
2. A latest bank account transaction statement as Address Proof signed by the member.
3. Self Attested Copy of Aadhaar Card, Driving License, Voter ID etc.

How to Create a HUF Affidavit online?

To create a HUF Affidavit online, one needs to do the following :

• Step 1: Visit to Our “edrafter.in” website and click on “Legal Documents” and then click on “All Affidavit”.
• Step 2: It will redirect you to our “All Affidavit” page. Now click on “HUF Affidavit”.
• Step 3: Next, You will be redirected to the “HUF Affidavit” where you need to fill a form with all the necessary details.
• Step 4: Next, we will prepare the draft of your HUF affidavit and share the same with you on you mail for your approval where you can check the draft of your document and if required, you can ask us to make the necessary changes.
• Step 5: Once you approve the draft, we will prepare the HUF Affidavit and deliver the hard copy to your doorstep.

Before Making an affidavit online for HUF, you should be aware of Types of Affidavit.

What should be the stamp paper value for the HUF affidavit?

As for the HUF Affidavit stamp paper value the most common Stamp Duty all over the State is used which is 100/-. The government of India has authorized different kinds of Stamp Duty in all the States of India. For example, In Maharashtra, Only the denominations of 100/- & 500/- is used. 

It is a common scene in every state using the most used Stamp Duty is adopted regardless of the document. Though sometimes it depends on the urgency of the document itself so the denominations are changed such an affidavit can be made on the denomination of 10/- to 500/- but mostly people choose 100/- for documents such as HUF Affidavit stamp paper.

Is registration required for HUF?

Any legal document, getting it registered is always been beneficial for the members and parties. When you register any legal document it gives a sense of authenticity to the organization or collecting party where this has to be submitted that the document is not a fraudulent document but an authentic one. Same is the scene with the HUF Affidavit and other complete documents. The law makes it compulsory to register it.

Who are the legal heirs of HUF?

It is made up of a common ancestor, his male progeny, and their daughters and wives for the following three [three] generations. Daughters and Sons are referred to as HUF “Coparceners,” but women who join the HUF after marriage are merely given the status of “Member.”

Can HUF be applied by Muslims?

Absolutely No, only Hindu and members of Hindu families are only allowed to apply for HUF Affidavit and other documents to form a HUF.

Conclusion  

The creation of an online HUF affidavit is a swift and straightforward process. By obtaining the necessary documents, meticulously completing the details, and ensuring proper notarization, you can efficiently fulfill this legal requirement.