Part 1 — Why make an HUF PAN?

• It creates a separate taxpayer (HUF) with its own basic exemption and deduction opportunities — so family income can be split between individuals and the HUF to reduce overall tax legally. SBI Life Insurance+1

• Useful when the family owns ancestral property, receives rent/dividends, or runs a family business. ClearTax

Part 2 — Step-by-step: How to create HUF and get a PAN

Step 1 — Decide HUF name & Karta

• Choose a name like “[FamilyName] HUF” (e.g., Ramesh Kumar HUF).

• Identify the Karta (the head who will sign documents) — typically the eldest member but can be any senior member.

Step 2 — Draft an HUF deed / affidavit (recommended)

• Prepare a short HUF deed or notarised affidavit stating:

  • HUF name, date of formation

  • Name of Karta and list of coparceners (family members)

  • Address of HUF

• A notarised affidavit on stamp paper is commonly accepted by PAN portals and banks. (Keep a few copies.) Income Tax India+1

Step 3 — Collect Karta’s identity & address proofs

• Karta’s documents (photocopies): Aadhaar / Passport / Voter ID / Driving licence for identity & address as required by PAN/ bank. Protean eGov Technologies

Step 4 — Apply for PAN (Form 49A) — online (recommended) or offline

Online (Protean/UTIITSL/NSDL):

1. Visit official PAN portal (Protean formerly NSDL / UTIITSL).

2. Choose Form 49A and Applicant type = HUF.

3. Fill HUF name, Karta details, address, AO code etc. Upload documents as asked. You’ll get an acknowledgement/token. Protean eGov Technologies+1

Offline:

• Download/print Form 49A, tick HUF, fill details, attach copies of documents (affidavit, Karta ID/address) and submit at a PAN centre / courier to the address printed on the instructions. Income Tax India

Step 5 — Documents to submit with Form 49A (HUF)

• Affidavit / HUF deed signed by the Karta showing names of coparceners.

• Identity proof of the Karta (Aadhaar/Passport etc.).

• Address proof of the Karta / HUF (utility bill, Aadhaar, bank statement).

• Passport-size photo of Karta (if requested).
  (Income Tax Dept. and PAN portals list same requirements.) Income Tax India+1

Step 6 — Receive PAN and open HUF bank account

• After processing, PAN will be allotted to the HUF. Use PAN to open a bank account in the HUF’s name (provide PAN, deed/affidavit, Karta’s ID). Karta signs on behalf of HUF. Protean eGov Technologies

Part 3 — Quick checklist (copy & use)

• Draft HUF deed/affidavit (notarised) — name, date, list of coparceners.

• Karta’s ID proof (Aadhaar / Passport).

• Karta’s address proof (utility bill / Aadhaar).

• Fill Form 49A (choose HUF).

• Submit/upload docs to Protean/UTIITSL or PAN centre.

• Receive PAN → open HUF bank account → maintain separate books.

(For exact form fill instructions and AO codes use official PAN portals.) tin.tin.proteantech.in+1

Part 4 — How HUF helps you save tax (legal, practical moves)

Core idea: split income into separate taxpayers

• HUF is taxed separately and gets the basic exemption and deductions — so income moved/earned by the HUF is taxed in the HUF’s hands, reducing total family tax. SBI Life Insurance+1

Practical tax-saving levers

1. Keep ancestral property/investments in HUF name

   • Rent, interest or dividends from assets held by HUF are taxed to HUF — use HUF’s exemption and deductions. (Don’t transfer assets purely for tax avoidance.) ClearTax

2. Use HUF’s separate Section 80C pool

   • HUF can invest in ELSS, PPF, NSC, life insurance etc. and claim up to ₹1.5 lakh under Section 80C (subject to current limits). This is in addition to each individual family member’s 80C. Income Tax India+1

3. Claim 80D (Health insurance)

   • HUF can pay and claim deduction for medical insurance premium within limits. Income Tax India

4. Income from family business

   • If the family runs a business via HUF legitimately, profits will be taxed in HUF. Proper accounting and real business substance are essential to avoid scrutiny.

5. Gifts & capital contributions

   • Gifts to HUF from relatives are typically not taxable. Maintain clear records of gifts/contributions. Gifts from non-relatives above ₹50,000 are taxable — take care. Income Tax India+1

6. Use Form 15G / 15H

   • HUF can submit Form 15G (when eligible) to banks to avoid TDS on interest if total income of HUF is below basic exemption. Income Tax Department

Important caution

Tax authorities may examine artificial transfers done only to save tax. Always make transfers for genuine family/ business reasons and keep full documentation (deed, bank transfers, minutes/records). TaxTMI

Part 5 — Filing tax returns and compliance

• File a separate ITR for HUF (choose ITR form based on income type — ITR-2, ITR-3 or ITR-4 as applicable). HUF with business income may need audit if turnover/profit thresholds are crossed. Income Tax Department+1

• Quote HUF PAN on all HUF financial transactions. Keep separate books and bank statements to prove HUF income and expenses.

Part 6 — Simple examples (quick)

Example 1 — Rent moved to HUF

• Family receives ₹3,00,000/year rental. If rental is rightly owned by HUF, HUF claims ₹2.5 lakh basic exemption — tax minimized or zero in HUF, lowering family’s combined tax.

Example 2 — HUF 80C investment

• HUF invests ₹1.5 lakh in PPF/ELSS — HUF claims 80C. Individual members also can claim their own 80C individually — multiplies family tax savings (within legitimate limits).

Note: Figures for exemptions/deduction limits change from year to year — always confirm current limits at the time of filing. Income Tax India

Part 7 — Common pitfalls & how to avoid them

• Mixing funds: Don’t use personal accounts for HUF transactions. Always use HUF bank account.

• No deed / no records: Keep the deed, gift deeds, bank transfer proofs and minutes (if any).

• Artificial transfers: Transfers to HUF without genuine family/business purpose can be disallowed.

• Wrong ITR form or missed audit: Leads to penalties — confirm which ITR applies to HUF. Income Tax India+1

Part 8 — Where to check / apply (official links)

• Income Tax Dept. — HUF guidance & ITR help (official rules & forms). Income Tax India+1

• Protean / NSDL / UTIITSL PAN portals — apply for PAN online (Form 49A