Can anyone create an HUF?
A HUF arises from a Hindu undivided family with a common ancestor, where members include the Karta, coparceners and women. A person can start a HUF only after marriage, with at least a spouse. A HUF needs its own PAN and bank account before it can file a return in its own name.
Can an HUF claim 80C and 80D?
Yes, in the old regime. An HUF can claim 80C on investments such as PPF made in the HUF's name, and 80D on health insurance for members, subject to limits. In the new regime these deductions are not available, so the choice depends on the HUF's investments.
Is the Karta responsible for filing?
Yes. The Karta signs and verifies the return on behalf of the HUF. The return is filed under the HUF's PAN, not the Karta's PAN. If the Karta dies or is incapacitated, the next senior member takes over as Karta.
What happens if the HUF has not filed returns for years?
Past returns can still be filed within the time allowed, and a notice is possible if income was above the limit. We review which years are open, file the pending returns where permitted, and prepare the explanation for any income shown in AIS.
How is capital gains taxed on sale of ancestral property?
The HUF is the owner, so the gain is the HUF's. The cost can be the previous owner's cost or the fair value as on 1 April 2001 if the property was acquired earlier. Exemptions under 54 and 54EC can be claimed if the HUF reinvests. See
exemption planning.
Is partition of an HUF taxable?
A total or partial partition among members is generally not a transfer and does not attract tax, but the income from property received by a spouse on partition is clubbed with the other spouse's income. Documenting partition properly avoids later disputes with the department.
What is the last date to file an income tax return?
For individuals and HUFs who do not need an audit, the usual due date is 31 July after the financial year ends. Cases needing a tax audit normally get 31 October, and companies with transfer pricing reports 30 November. The government sometimes extends dates, so we confirm the notified date for your year before we start.
What happens if I miss the ITR due date?
You can still file a belated return under section 139(4), generally until 31 December of the assessment year, but with a late fee under section 234F (₹5,000, or ₹1,000 if total income is up to ₹5 lakh) and interest under 234A. Most losses cannot be carried forward in a belated return, which can cost more than the fee itself.
Do I need to e-verify my return after filing?
Yes. A return is treated as filed only after e-verification, which must be completed within 30 days of filing. You can verify with Aadhaar OTP, net banking, a pre-validated bank account or a demat account. We guide you through it and confirm the processed status on the portal afterwards.
