HUF, a Way to Save Income Tax #HUF #TAX #INDIA #GST
HUF means hindu undivided family is a separate entity for income tax law. Its income is taxable at the same rate as individual and also avail all the available deductions and exemptions that applicable to individual. In other words, it can be used to reduce tax outflow through the division of income between multiple assessable units. Some of the major advantages are listed below : Income of up to Rs 2,50,000/- earned by the HUF is tax-free as per the tax slabs for the Assessment Year 2022-23. D eductions under Section 80C, 80D, 80G can be claimed by the HUF. HUF can also claim deduction on interest paid on house property of up to Rs. 2,00,000/- in a year. However, the house property must be in the name of the HUF or jointly in the name of the HUF and one of its members. The principal repayments can be claimed as deduction under Section 80C. Since the income after tax of the HUF is the family’s income, the Karta can use it for family expenses and can also distribute it among the memb