What is an HUF deed?
An HUF deed is a written declaration that the family exists as a Hindu Undivided Family, naming its karta and members and stating how it was funded.
Strictly, an HUF comes into existence by status rather than by document — under Hindu law it arises automatically. But nobody outside the family can see status. The tax department needs something to attach a PAN to, and a bank needs something to open an account against, so in practice the deed is what turns the HUF from a legal concept into a working entity.
What goes into the deed
- Date and place of the declaration.
- Karta's name, address and PAN.
- Every member, with their relationship to the karta.
- The HUF's name, conventionally the karta's name followed by "HUF".
- The corpus — the initial sum or asset that funds it, and where it came from.
- A statement that the karta will manage the family's affairs.
- Signatures of the karta and adult members, and usually two witnesses.
The corpus clause is the one that matters later. It is the first thing examined if the HUF's funding is ever questioned, so it should describe an actual, traceable source rather than a round number with no origin.
What stamp paper value is needed?
₹100 is standard across most states. Maharashtra requires ₹500 and Karnataka ₹200. Rates change, so it is worth confirming with a stamp vendor in your own state rather than assuming.
The Income Tax Department is not concerned with the denomination. Its interest is in whether the deed is executed, signed and consistent with the PAN application — an under-stamped deed is a state stamp-duty question, not a tax one.
Who are the members at formation?
The karta, their spouse, all their children, and their children's children.
Since the 2005 amendment to the Hindu Succession Act, daughters are coparceners by birth, with the same rights as sons, and they remain coparceners after marriage. A woman can serve as karta where there is no adult male member.
An HUF can accept gifts from non-members to build its corpus. It cannot receive salary — an HUF has no capacity to be employed.
What to do after the deed is signed
- Apply for a PAN in the HUF's name, using Form 49A with the karta signing on its behalf. This takes the longest, usually two to three weeks.
- Open a bank account in the HUF's name, with the deed and PAN. Most banks also want the karta's own KYC.
- Get a rubber stamp in the HUF's name. Banks routinely ask for it on instructions and cheques.
- Fund the corpus in a way that matches what the deed says, by traceable transfer.
- File a return for every year the HUF has income.
Steps 4 and 5 are where HUFs most often fall apart. A deed and a PAN with no corresponding money movement, or an account that quietly gets used for household spending, undoes the separation the deed was created to establish.
The funding trap worth understanding before you start
Transferring your own money into the HUF does not move the tax. Under Section 64, income from assets a member transfers to the HUF is clubbed back into that member's income.
An HUF is genuinely useful where there are ancestral or inherited assets to hold, or gifts from outside the family. It does very little for someone hoping to split income they earn themselves, and the deed cannot change that — no wording in it overrides the clubbing provisions.
Does the deed have to be notarised or registered?
Notarisation is common and banks often ask for it, but a declaration deed on stamp paper with witnesses is generally accepted.
Registration is not required for a simple declaration. It becomes relevant if immovable property is being brought into the HUF, where the transfer of that property has its own registration requirements independent of the deed.
Is the data I enter here stored anywhere?
No. The deed is generated entirely in your browser and sent straight to your print dialog. Nothing is transmitted to any NYVO server, and nothing is retained. If you close the tab, the data is gone — so print or save the PDF before you leave.
This page explains what an HUF deed is and how it is normally used. It is general information rather than legal advice; the drafting and execution of family documents depend on facts specific to your family, and are worth reviewing with a professional before you rely on them.