How does a Hindu Undivided Family (HUF) save tax in India?

An HUF is registered as a separate tax entity with its own PAN card. By splitting ancestral or family business income to the HUF, you can leverage its separate slab rates and basic exemption limit, lowering the family's overall tax brackets.

Can an HUF earn salary income?

No, an HUF cannot earn salary. It can earn from Business, House Property, Capital Gains, and Other Sources like interest.

What is the basic tax-free limit for HUF in New Regime?

For FY 2026-27 under the New Tax Regime, the basic exemption for HUF is ₹4 Lakhs, and it gets a rebate u/s 87A up to ₹12 Lakhs income.

HUF Tax Benefit CalculatorFY 2026-27

Estimate tax savings by splitting family income between individuals and an HUF entity for FY 2026-27.

Share this calculation:

Documentation

Quick Summary: HUF Tax Benefit Calculator

A Hindu Undivided Family (HUF) acts as a separate legal tax entity. In FY 2026-27, an HUF gets its own basic exemption limit and 80C deductions (in Old Regime), allowing a family to split ancestral or business income and lower their effective tax bracket. Under the New Regime, an HUF benefits from the same expanded slabs as individuals.

Related Calculators

Income Tax Calculator

Family Trust vs HUF Tax Comparator

Clubbing of Income Checker

Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.