People often get baited by Youtube videos and Instagram reels into creating an HUF, thinking that it is an easy escape to get another PAN and in turn another 12 lacs of income can go tax free. To give a brief, HUF or Hindu Undivided Family is basically a body comprising of the Head of family (Karta) and family members (co-parceners) and can only be created once an individual is married.
Now, HUF is essentially an estate planning and family wealth management vehicle and not a tax saving tool. When an HUF is registered, members of the HUF acquire rights in its assets in accordance with Hindu law. Further, it solves the problem of proprietorship firms as they cease to exist on the death of the proprietor. This way family businesses can go on without having to change PAN or face legal challenges at such a time.
But you may ask what's the harm in using it as a tax saving tool at the same time. So, for one thing there is a chance you may not get away with it. There are laws that can add up the diverted income right back to your tax returns and slap you with a fine at the same time.
But for the most important part, you have to understand whether you want to build wealth for yourself or your family. Because you can choose how you dispose off your wealth at any point in your life but in the case of an HUF, co-parceners can demand for partitions and settlements, which may not be in your control.
So you have to choose wisely and more importantly, according to your financial goals. See, the objective here is not to discourage HUF, it is a great tool for estate planning but always know what you are getting yourself into. Otherwise you may end up being penny-wise and pound-foolish.

Professional tip: HUFs are only available for Hindus, Jains, Sikhs, or Buddhists.