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HUF means Hindu undivided family in India. A person can save income tax by creating a HUF in India. HUF is taxed separately from its members in India. A hindu family come together to form a HUF in India. Individuals belonging to other religions are not allowed to form HUF’s  in India except Sikh & Jain. HUF has a separate PAN and file income tax returns in India. HUF is entitle for income tax rebate as per individual in India.