Archive · 3 Oct 2025
Tax Benefits for Hindu Undivided Families (HUF) Explained
An HUF (a family group) is treated like a separate entity for taxes, offering benefits like a tax-free income up to ₹2.50 lakhs (old regime) or ₹4 lakhs (new regime).
They can invest in assets like houses and stocks.
HUFs can save taxes on capital gains from stocks and get tax breaks for home loans and paying health insurance premiums for family members, with some differences in benefits between the old and new tax regimes.
They can also claim deductions for expenses related to disabled members.
However, they cannot claim certain deductions available to individuals like tuition fees.
HUF is a separate tax entity with its own basic exemption limit.
HUF can claim tax-free long-term capital gains on listed shares and equity-oriented mutual funds.
HUF can claim deductions for home loan repayments and interest, subject to limits, with differing rules between old and new tax regimes.
HUF can use Section 54F to claim exemption on capital gains from assets (excluding a residential house) if reinvested in a residential house.
HUF can contribute to PPF accounts of members and avail tax benefits; can pay premiums for family health insurance and optimize tax benefits.
- Who
- Hindu Undivided Family (HUF)
- What
- Tax benefits available to an HUF under current tax laws.
- When
- Ongoing, according to current tax laws
- Where
- India
- Why
- To understand and utilize available tax benefits.
- Tax Entity Status
- Separate tax entity under income tax laws
- Basic Exemption (Old Regime)
- ₹2.50 lakhs
- Basic Exemption (New Regime)
- ₹4 lakhs
- Section 112A Benefit
- Tax-free long-term capital gains (₹1.25L) on listed shares & equity-oriented mutual funds
- Section 80C Deduction
- Up to ₹1.50 lakhs for principal repayment on home loans
- Section 24(b) Deduction
- Interest on home loans (up to ₹2 lakhs for self-occupied or let out properties) under old tax regime
- Section 54F Benefit
- Exemption on long-term capital gains if reinvested in a residential house
