An HUF can help you save lakhs in taxes annually.
Over 20 years, this could grow to crores. π
But 98% of taxpayers donβt have an HUF π―
Due to confusion.
Let me clear all your doubts on HUF so you can benefit.
A Thread π§΅
Over 20 years, this could grow to crores. π
But 98% of taxpayers donβt have an HUF π―
Due to confusion.
Let me clear all your doubts on HUF so you can benefit.
A Thread π§΅
1. Whatβs an HUF?
HUF stands for Hindu Undivided Family.
It's treated as a separate entity under tax laws.
This allows you to benefit from the basic exemption limit and reduced tax rates on the first few lakhs of income. x.com
HUF stands for Hindu Undivided Family.
It's treated as a separate entity under tax laws.
This allows you to benefit from the basic exemption limit and reduced tax rates on the first few lakhs of income. x.com
2. Who can form an HUF?
Families of Hindus, Buddhists, Jains, and Sikhs can set up an HUF.
However, it requires at least two members, like a husband and wife.
The Karta is the head of the family, and members can include the spouse, children, grandchildren, etc.
Families of Hindus, Buddhists, Jains, and Sikhs can set up an HUF.
However, it requires at least two members, like a husband and wife.
The Karta is the head of the family, and members can include the spouse, children, grandchildren, etc.
3. How to contribute capital to an HUF?
Gifting money to the HUF account might seem simple, but remember, the HUFβs income will be linked to the membersβ taxes.
The family can pass down ancestral property to the HUF or start a business using its income.
Gifting money to the HUF account might seem simple, but remember, the HUFβs income will be linked to the membersβ taxes.
The family can pass down ancestral property to the HUF or start a business using its income.
4. Filing HUF's ITR
An HUF can invest in shares, mutual funds, and other assets.
Capital gains are taxed separately for the HUF.
Just like an individual, the HUF can also claim the Basic Exemption Limit.
An HUF can invest in shares, mutual funds, and other assets.
Capital gains are taxed separately for the HUF.
Just like an individual, the HUF can also claim the Basic Exemption Limit.
5. Can you claim rebates and basic exemption limits?
Yes, you can.
But how can you save even more on taxes? π
Yes, you can.
But how can you save even more on taxes? π
6. Additional Tax Deductions
You can claim these tax deductions:
πΈ Section 80C: Up to βΉ1.5L for LIC, etc.
πΈ Section 80D: Health insurance premiums for HUF members
Setting up an HUF is a smart way for families to save taxes legally.
You can claim these tax deductions:
πΈ Section 80C: Up to βΉ1.5L for LIC, etc.
πΈ Section 80D: Health insurance premiums for HUF members
Setting up an HUF is a smart way for families to save taxes legally.
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