New Tax Slab in Budget applicable for HUF also?

The new tax slabs introduced in the budget are applicable to individuals and Hindu Undivided Families (HUFs). For FY 2024-25, the tax slabs under the new regime are as follows: - _Up to Rs 3 lakh_: NIL - _Rs 3 lakh - Rs 7 lakh_: 5% - _Rs 7 lakh - Rs 10 lakh_: 10% - _Rs 10 lakh - Rs 12 lakh_: 15% - _Rs 12 lakh - Rs 15 lakh_: 20% - _Above Rs 15 lakh_: 30% Considering your example, if an HUF earns around Rs 11 lakh, with no capital gains or exempted income, the tax liability would be: - _Up to Rs 3 lakh_: NIL - _Rs 3 lakh - Rs 7 lakh_: 5% = Rs 20,000 - _Rs 7 lakh - Rs 11 lakh_: 10% = Rs 40,000 Total tax liability would be Rs 60,000. However, with the increased rebate under Section 87A to Rs 60,000 for the new regime, the HUF's tax liability would be NIL.¹

No, the rebate under Section 87A of the Income Tax Act is not applicable to Hindu Undivided Families (HUFs). This rebate is specifically available to individual taxpayers.

Yes, the new income tax slabs apply to HUFs in the same way as individuals. HUFs are taxed as a separate entity under the Income Tax Act, but they use the same slab rates as an individual.

Under the new tax regime for FY 2026-27:
- Up to Rs 4 lakh: Nil
- Rs 4-8 lakh: 5%
- Rs 8-12 lakh: 10%
- Rs 12-16 lakh: 15%
- Rs 16-20 lakh: 20%
- Rs 20-24 lakh: 25%
- Above Rs 24 lakh: 30%

HOWEVER, there is a critical difference: The Section 87A rebate (which makes income up to Rs 12 lakh effectively tax-free for individuals) does NOT apply to HUFs. The rebate under Section 87A is available only to individual resident taxpayers, not to HUFs. So an HUF with Rs 10 lakh income will pay tax at the applicable slab rates ,  it cannot use the Rs 60,000 rebate that an individual with the same income would get.

For HUFs, the old regime can often be more tax-efficient because the HUF can claim deductions under Section 80C, 80D, and others that are not available under the new regime. Calculate both before choosing.

This [HUF taxation guide for AY 2026-27](https://taxgarden.in/blog/huf-taxation-india-formation-itr-filing-deductions-guide-ay-2026-27) covers the regime comparison, ITR filing, and deductions available to HUFs.