Home > Income Tax > Help Center > Hindu Undivided Family Last Updated: Mar 12th 2023
HUF means Hindu Undivided Family, treated as separate entity for Income Tax purpose. Learn more on composition, taxability, deductions, rebate, ITR filing.
Income Tax Act 1961 has not defined the word “HUF”. As per Hindu law, HUF means a family which consists of all males lineally descended from a common ancestor and includes their wives and daughters.
HUF is treated as separate entity under the Income Tax. It will have separate PAN. Following 2 conditions needs to be satisfied to be assessed as HUF.
Ancestral property means a property which is inherited from any of three immediate male ancestors i.e., father, grandfather and great grandfather. Hence property inherited from any other relation will not be treated as ancestral property.
Income from the ancestral property held by following families is taxable as income of HUF.
Property received by daughter from joint family property will be her absolute property and the income from such property is taxable in her hands.
The following incomes are not taxable under HUF
HUF can claim the deductions under Chapter VIA . HUF can claim deduction like 80C, 80D, Home Loan interest etc
Rebate u/s 87A is not applicable to HUF. If the income of HUF is more than basic exemption limit and less than Rs 5 lakhs, it is required to pay taxes. No rebate is applicable
HUF is required to file income tax returns in ITR 2 or ITR 3 or ITR 4 depending on the source of income. HUF cannot use ITR 1 for filing income tax return
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