The HUF Deed is a written formal document on a Stamp paper stating the names of the Karta and the Co- partners ( Members) of the HUF . The eldest male member of the HUF becomes the Karta of the HUF. As a HUF is treated as a separate entity different from its members , a HUF is required to apply for a separate PAN Card.
HUF Deed required for creation of HUF pan card and HUF account. With the help of HUF deed and account, HUF can start receiving payments and the amounts received in the name of HUF will not be taxed in the hands of the individual members of the HUF.
HUF Deed includes the declaration provided by each member of the family where they declare the name of the Karta and also state that the authority of accounts is vested in hands of Karta, the members are the only members of the HUF. The names of the members of the HUF and the name of the HUF are also required to be stated in the HUF Deed at the time of creation of HUF . The name of the HUF is usually the name of the Karta followed by the word HUF.