Hindu law governs what is referred to as a “Hindu Undivided Family” (HUF). A HUF cannot be founded by an agreement between two parties or by a group of individuals who are not related to one another.Even after the passing of the last common ancestor, the HUF continues to exist, and the next-oldest male or female becomes “Karta,” or the head of the family.While HUF is taxed individually, you can reduce your tax burden by forming a family unit and pooling your assets. A HUF alone, not any of its coparceners or members, determines how much income is to be taxed.

Separate Legal entity : HUF is regarded by the law as a distinct legal entity. This permits the HUF to open bank accounts in its name, receive a separate PAN card, and file separate income tax reports
Tax-Free Gift : An individual or HUF may accept monetary gifts up to INR 50k in the form of cash, checks etc. According to the income tax statute, it is not taxable. Also, Karta’s gift to his daughter upon her marriage is exempt from taxes
Tax Savings : Since a HUF is taxed separately from its members, it is eligible to claim any exemptions or deductions permitted by the income tax regulations on its own
Equal Rights : The property that a HUF owns belongs to all of its members equally. Every new family member, whether by birth or marriage, receives an equal portion of the property. Even an unborn child in the mother’s womb will be accorded equal rights
Inheritance : Under the name of the Hindu Undivided Family, inheritances are acceptable. After the maker of the Will passes away, the legal heir would have a stake in the bequest; his children are also regarded as legal heirs to the assets so inherited

Step 1 : Create an HUF deed: HUF deed is a written formal document on a stamp paper stating the names of Karta (Eldest member of the family) and the Coparceners (Family Members). The name of the HUF is the name of the Karta followed by HUF.

Step 2 : Apply for PAN & TAN: HUF is considered as a separate entity under income tax India. It needs separate PAN card for tax purpose. Assessee need to fill the form 49A to apply for the PAN card.

Step 3 : Open Bank Account: Under Indian income tax law, a HUF is treated separately from other entities. For tax purposes and capital formation purposes, separate bank accounts are required. Every bank may have it open.

1.PAN Card copy of Karta

2.Aadhar Card copy of Karta

3.Passport Size Photograph of Karta

4.HUF Deed

5.Specimen Signature of Karta & Family members with their names & relation with Karta