What does HUF mean?

HUF stands for Hindu Undivided Family. It comprises of Husband, Wife, and children, including unmarried daughters staying with the family.  If you are Hindu, Buddhist, Jain or Sikh, you can have a HUF as a separate tax entity. Anyone who is part of HUF is considered as a member of HUF. The individual who can create a distinct entity is considered the Karta of the HUF. If we view the Income-tax perspective, HUF is taxed similar to the individual, however, the only difference is a PPF (Public Provident Fund) account cannot be opened in the name of HUF. Slab rates are applicable to an individual as well as HUF.

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