Introduction

As you consider monitoring your family finances and saving taxes in India, forming a Hindu Undivided Family (HUF) is a great option. If you create an HUF, your first step will be to apply for an HUF PAN card, file tax returns under an HUF, open demat accounts, and transact in the name of the HUF. This article shows you step by step how to apply for an HUF PAN Card, so you know the steps and requirements involved to make the process as smooth as possible.

What is a HUF PAN card?

A HUF PAN card is a ten-digit alphanumeric number assigned by the Income Tax Department to a HUF established under an umbrella with the Karta (head of family).  The composition of the 10-digit PAN structure is as follows:

• The first three digits are letters (AAA-ZZZ)

• The fourth letter is the letter H for HUF

• The fifth digit is the first letter of the HUF's last name, and

• The last four digits are numbers (0001-9999)

A sample of the HUF PAN card is "AABHS1234K" for HUF Sharma. The HUF PAN card is essential for filing taxes, investments, and managing family finances.

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Benefits of Having a HUF PAN Card

The HUF PAN card application allows you to obtain tax benefits by recognising the HUF as a separate taxable entity, which may benefit your tax liability. You'll additionally be able to open bank or demat accounts for the HUF and invest in shares or mutual funds. The HUF PAN card application is the starting point if you're looking for tax or wealth creation planning.

Documents Required to Make an HUF PAN Application

You must prepare these documents to be able to apply for the HUF PAN card:

• HUF Affidavit: This declaration states the Karta's name, father's name, residential address, details of the coparceners, and confirmation that an HUF has been formed.

• Proof of Identity, Address, and Date of Birth: You can submit one of these documents for the Karta: An Aadhaar card, passport, driving license, voter ID, or ration card. For proof of address, you can provide utility bills (electricity, water, or landline) not older than three months.

• Optional HUF Deed: Although you are not required to have a deed embodying the HUF's structure, it would help your application.

All documents should be in the Karta's name and legible to ensure your online application for the HUF PAN card is not delayed.

How to Apply for HUF PAN Card Online:

To apply for an HUF PAN card online, please follow these steps using the NSDL (Protean) or UTIITSL portal:

• Visit the Official Portal: Go to the authorised website for the PAN application. Select "New PAN" on the Home Page, choose "Hindu Undivided Family" as the applicant category.

• Enter HUF Details: Enter the HUF full name (e.g. "Vijay Gupta HUF") under "Last name/Surname", select the date of HUF formation (DD/MM/YYYY). You can use "M/s" if applicable.

• Contact Information: Provide your email address and mobile number. Your application will have a temporary token number that lasts 30 days.

• Form Completion: Fill out the online application form by choosing "Physical PAN Card" (for an additional charge of ₹93 + GST) or choose "e-PAN" when e-PAN applies.

Note: Depending on your verification type, you may submit HUF PAN applications via online Aadhaar e-KYC or by physical submission. Before you submit your application, ensure you check the latest circulars from NSDL or UTIITSL.

• Address: Select communication address (residential/office) and select your HUF's income source (from business, investment, etc).

• Find AO Code: Use the lookup options on the portal to find your Assessing Officer (AO) code for your city/state.

• Submit Proofs: Upload Aadhaar or another document to prove identity, address and DOB. Complete the declaration.

• Payment: Online application fees can be paid via bank transfer, cards, or demand drafts. The costs are slightly different, depending on the place of delivery.

• Authentication and Print: Complete the Aadhaar e-KYC to authenticate and download the generated PDF. After downloading, print the PDF and sign it as Karta.

• Documents by Courier: Send the signed PDF, Affidavit and proofs to the address in the Confirmation mail using speed post.

Track your HUF PAN Card Application

You will receive an acknowledgement number after you apply for a HUF PAN card. You can check your application status by entering the number into the NSDL or UTIITSL portal and verifying the captcha. Depending on your selection, the PAN is usually issued within 15-20 days as an e-PAN or a physical PAN card.

Valuable tips for a good experience:

• Confirm the details of applying online for the HUF PAN card to avoid mistakes.

• Make sure you send your courier on time; late entries can mean your token gets cancelled.

• Jain, Sikh and Buddhists can also be Karta of HUF. Please check on eligibility where necessary.

Conclusion

Mastering the process of applying for a HUF PAN card will allow you to take full advantage of tax benefits and manage purchases for a family group of investors. If you follow the steps and have the relevant paperwork, you can submit the HUF PAN card application online without any doubts. For additional personal, informational, and assistance, speak with a tax advisor so that the HUF is appropriate and beneficial for your investment intentions.

Explore more: Difference between Individual and HUF demat accounts | Can a HUF open a Demat account | What happens to the demat account of HUF on the death of the Karta?