HUF

Definition	:	Hindu Undivided Family
Category	:	Governmental » Rules & Regulations
Country/Region	:	India
Popularity	:
Type	:	Initialism

What does HUF mean?

Hindu Undivided Family (HUF) is a family unit under Hindu law that is treated as a separate entity for the purpose of income tax assessment.
HUF consists of all persons lineally descended from a common ancestor, and includes their wives and unmarried daughters.

Note:
In India, there is a culture of joint families where multiple sources of income often arise for the family as a whole rather than a specific individual. In such cases, the income earned by the HUF is taxed as a separate entity and not in the hands of any individual family member.
To facilitate the taxation process, a separate Permanent Account Number (PAN) card is allotted to the HUF.