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Annual Compliance of HUF

Know the minimum annual compliances to be followed by a Hindu Undivided Family

    Hindu Undivided Family

    Income of HUF is assessed separately from income of its Karta or coparceners. However, the rules for taxation are similar as those applicable to any individual.

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    Income tax Return

    An HUF has to file its Income tax return if the Gross income exceeds the basic exemption limit of Rs. 2,50,000. The due date for filing ITR for those HUF which are not liable for tax audit is 31st July. In case the HUF is liable for tax audit, the due date comes to 30th September.

    Tax Audit

    Tax audit is required if the Gross turnover exceeds Rs.1 crore in the previous year. In case of profession, tax audit would be required if the gross receipt exceeds Rs.50 lacs in the previous year. Tax audit would be mandatory irrespective of turnover if the HUF has ever opted for presumptive taxation scheme and declared its income below 6% or 8% or 50% (as applicable). In case after opting for presumptive taxation scheme, HUF decides to exit from the scheme, then also it would be liable for Tax audit.

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    ITR Form

    An HUF having income from profits and gains of business or profession has to file its Income Tax return using ITR 3. If there is no income from profits and gains of business or profession, ITR 2 may be chosen. In case the HUF opts for presumptive taxation scheme, it has to use ITR 4 for filing its return of Income.