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FY 2025–26 · AY 2026–27 · Budget 2025 Updated

HUF Tax Calculator

An HUF is a separate taxpayer — taxed at individual slab rates, with no standard deduction but full 80C / 80D / 80G in the old regime. Compare old vs new live.

🏠 Regime
Tax regime (deductions apply in the old regime only)
💼 HUF income
HUF total income Business, house property, interest, capital gains
Enter the HUF's total income from all sources. An HUF has no salary, so no standard deduction applies in either regime.
📉 Deductions Old regime
80C PPF, ELSS, LIC, tax-saving FD — max ₹1.5L
80D Health insurance for members — up to ₹50k
Other 80G, 80TTA, home-loan interest…
80C is capped at ₹1,50,000 and 80D at ₹50,000. Deductions are ignored in the new regime.

Slab-wise breakdown

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Disclaimer: Indicative estimate for a resident HUF taxed at ordinary slab rates. Actual tax may vary with capital gains, special-rate income and clubbing provisions. Rates per Finance Act 2025.

The HUF — a separate taxpayer in its own right

A Hindu Undivided Family (HUF) is a distinct "person" under the Income Tax Act with its own PAN and its own return. It is taxed at exactly the same slab rates as an individual below 60 — ₹2.5 lakh basic exemption in the old regime, and the standard new-regime slabs. It cannot claim a standard deduction (it earns no salary), but it can own house property, run a business, and claim 80C, 80D and 80G in the old regime.

Own PAN
An HUF files its own ITR — separate from every member
₹2.5L
Basic exemption in the old regime (same as an individual below 60)
No STD
No standard deduction — an HUF has no salary income
80C ✓
Old regime: 80C, 80D, 80G and more are all available

HUF income tax slabs — FY 2026-27

An HUF is taxed on the same slabs as an individual below 60. The new regime has lower rates but no deductions; the old regime has higher rates but lets the HUF claim 80C, 80D and 80G.

New Regime — FY 2026-27
Up to ₹4,00,000Nil
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
Above ₹24,00,00030%
Old Regime — HUF
Up to ₹2,50,000Nil
₹2,50,001 – ₹5,00,0005%
₹5,00,001 – ₹10,00,00020%
Above ₹10,00,00030%
An HUF gets the ₹2,50,000 basic exemption regardless of the karta's age — the higher senior-citizen exemption does not apply to an HUF. A 4% health & education cess applies on top of tax in both regimes.

How the HUF's tax is calculated

Total HUF income → subtract old-regime deductions (if chosen) → apply the slab rates → apply the 87A rebate if eligible → add surcharge (high income) and a 4% cess. Here is what an HUF pays at a few income levels (new regime, no deductions):

₹8,00,000 HUF income
New regime₹0
Old regime (no ded.)₹75,400
Best choiceNew
₹15,00,000 HUF income
New regime₹1,45,600
Old regime (no ded.)₹2,73,000
Best choiceNew
₹25,00,000 HUF income
New regime₹3,59,320
Old regime (no ded.)₹5,53,800
Best choiceNew
Figures are indicative for an HUF with ordinary slab-rate income and no deductions. The old regime can still win once large 80C / 80D / 80G deductions are added — enter your own numbers above to compare.

Saving tax through an HUF

A second basic exemption

Because the HUF is a separate taxpayer, income diverted to it (rent, business profit, interest on HUF assets) gets its own ₹2.5L exemption and 87A rebate, splitting the family's income into a lower slab.

Own PAN & own return

An HUF applies for its own PAN and files ITR-2 or ITR-3 separately from the members. It can hold a demat account, own property and run a business in the HUF's name.

No standard deduction

Unlike a salaried individual, an HUF has no salary, so the ₹75,000 / ₹50,000 standard deduction does not apply. It relies on Chapter VI-A deductions (80C, 80D, 80G) in the old regime instead.

Old vs new regime

If the HUF has meaningful 80C / 80D / 80G investments, the old regime often wins. With little to deduct, the new regime's lower slabs and ₹12L 87A rebate usually give a lower tax.

Frequently Asked Questions
What is a Hindu Undivided Family for tax purposes?

A separate taxable entity consisting of all persons lineally descended from a common ancestor, including their wives and unmarried daughters. It has its own PAN, files its own return, and gets its own basic exemption and deductions.

How does an HUF save tax?

Income legitimately belonging to the family — rent from ancestral property, a family business, or returns on the HUF's own investments — is taxed in the HUF's hands with a separate exemption limit and separate 80C and 80D limits, instead of being added to an individual's income.

Can I transfer my own income to an HUF?

No. Property gifted by a member to the HUF is caught by section 64(2), and the income continues to be taxed in the member's hands. The HUF should be funded by ancestral property, inheritance, or gifts from non-members.

Can an HUF claim the same deductions as an individual?

It can claim 80C, 80D, 80G and most Chapter VI-A deductions, but not those personal to an individual such as 80U, 80CCD or the section 87A rebate. Under the new regime the same restrictions apply as for individuals.

How is an HUF created and closed?

It comes into existence automatically on marriage in a Hindu family; practically it is set up by executing a declaration, obtaining a PAN and opening a bank account. It is closed by a full partition, which must be recognised under section 171 to be effective for tax.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.