What is HUF Tax?
The HUF Tax Calculator computes income tax for a Hindu Undivided Family — a unique tax entity recognized only under Indian tax law. HUF is a separate legal entity from its individual members and gets its own PAN, bank account, and tax exemption limits. This makes HUF one of the most powerful tax-saving tools available to Hindu, Sikh, Jain, and Buddhist families.
HUF is taxed at the SAME individual tax slabs (not the higher corporate/firm rates). In the Old Regime, the basic exemption is ₹2,50,000 — the same as an individual below 60. In the New Regime, HUF gets the same slabs with ₹4L tax-free. However, HUF does NOT get age-based higher exemption (senior/super senior limits don't apply to HUF) and does NOT get standard deduction (since HUF doesn't earn salary).
The beauty of HUF: the Karta (head of the family) can split family income between Individual and HUF, effectively doubling the basic exemption. Rental income from ancestral/HUF property, capital gains on HUF assets, interest on HUF investments, and business income from HUF business — all taxed separately from the Karta's individual income.
HUF can independently claim deductions under Section 80C (₹1.5L — LIC, PPF, ELSS), Section 80D (medical insurance for HUF members), Section 80G (donations), and Section 24 (home loan interest). This means a family can claim 80C deductions twice — once as Individual and once as HUF.
To create an HUF: you need at least one coparcener (born member) and a deed of HUF formation. Apply for a separate PAN, open a bank account, and start crediting HUF income to this account. Consult a CA for the proper setup.
Compare your individual tax using our Income Tax Calculator, or plan your salary structure using the Salary Calculator.
Formula
HUF is taxed at Individual tax slabs:
**Old Regime:** ₹0–₹2.5L: 0% | ₹2.5L–₹5L: 5% | ₹5L–₹10L: 20% | Above ₹10L: 30% Rebate: Taxable ≤ ₹5L → Tax = 0
**New Regime:** ₹0–₹4L: 0% | ₹4L–₹8L: 5% | ₹8L–₹12L: 10% | ₹12L–₹16L: 15% ₹16L–₹20L: 20% | ₹20L–₹24L: 25% | Above ₹24L: 30% Rebate: Taxable ≤ ₹12L → Tax = 0
**HUF vs Individual — key differences:** - No standard deduction (HUF doesn't earn salary) - No age-based higher exemption - No HRA exemption - CAN claim: 80C, 80D, 80G, Section 24, NPS
Worked Example — HUF income ₹10L, Old Regime: Deductions: 80C ₹1.5L + 80D ₹25K = ₹1.75L Taxable: ₹10L − ₹1.75L = ₹8.25L Tax: 0 + ₹12,500 + ₹65,000 = ₹77,500 Cess: ₹3,100 Total: ₹80,600
How to use this HUF Tax Calculator?
1. Enter the HUF's total annual income (rental, capital gains, interest, business income). 2. Select Regime (Old is usually better for HUF since there is no standard deduction in New Regime). 3. Enter 80C deductions (LIC premiums, PPF, ELSS in HUF's name). 4. Enter 80D (medical insurance for HUF members). 5. See total tax payable.
Tip: HUF usually benefits more from Old Regime because the lack of standard deduction means New Regime's advantage is reduced.