New Tax Slab in Budget applicable for HUF also?

Tax queries 260 views 2 replies
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Individual
38 Points Joined June 2023

Are the new tax slabs that got released in this budget also applicable to HUF?

For example, if HUF earns around 11 lakh, it will be a tax free income? [no capital gains and those exempted income]

Generally HUF and Individual have different tax slabs and hence this confusion.

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On 10 February 2025 at 08:46 Report
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Master in Accounts & high court Advocate
9037 Points Joined December 2011

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

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On 10 February 2025 at 10:37
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SEO Sai Gr. Hosp.
197724 Points Joined July 2016

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.

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On 10 February 2025 at 11:27


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