by Audit Analyst | Nov 26, 2025 | Hindu Undivided Family
Government scrutiny and reform discussions • The Government of India has been reviewing the continuing relevance of HUF as a tax-saving structure• There have been recommendations to phase out HUF benefits in modern tax regimes to prevent misuse• The Direct Tax Code...
by Audit Analyst | Nov 26, 2025 | Hindu Undivided Family
Eligibility to purchase insurance • A Hindu Undivided Family (HUF) can buy insurance policies in the name of its members• The policy must be taken for the benefit of a member using HUF’s funds• HUF cannot be the life assured but can be the policyholder if paying the...
by Audit Analyst | Nov 26, 2025 | Hindu Undivided Family
Authentication of income tax returns • A Digital Signature Certificate (DSC) is used to electronically verify the Income Tax Return (ITR) filed by the HUF• It is mandatory for HUFs if the return is being filed under audit or using ITR-3 for business income• Digital...
by Audit Analyst | Nov 26, 2025 | Hindu Undivided Family
Eligibility to file revised return • A Hindu Undivided Family (HUF) can file a revised return if there is an error or omission in the original ITR• Revised returns can be filed only if the original return was filed within the due date• Both belated and original...
by Audit Analyst | Nov 26, 2025 | Hindu Undivided Family
Family-run trading business • Operating a general store, textile shop, or electronics retail under HUF name• Business is financed and managed with joint family funds• Income is taxed in the hands of the HUF, not individual members• Karta supervises daily operations...
