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.