A family wishes to pool assets and earn business income as a Hindu Undivided Family rather than as individuals. The lesson notes one structural tax feature of HUF that helps the family. What is that feature?

1. The lesson explains the HUF as a tax-efficient family vehicle. 2. The HUF is treated as a separate taxable entity, distinct from its members. 3. It has its own PAN and files its own income tax return. 4. This separation lets the family split income across the HUF and individual members. 5. There is no automatic ten-year exemption; the saving is in entity-level separation. _Source: ICSI CS Executive Paper 3 (Setting up of Business Entities and Closure) — Lesson 1: Choice of Business Organisation, pp. 2-11._