Hindu undivided family tax saving

In addition to a distinct basic tax exemption of Rs. 2.50 lakh and a separate tax exemption for each of its members, a HUF is recognised as a separate tax entity (normally available to individuals). Whether the HUF is a resident or not, this is available. In its own name, HUF may invest in a variety of assets, including real estate, stocks, and mutual funds. Like an individual, a HUF is not required to pay taxes on the first Rs 1 lakh of long-term capital gains from its investments in equities and listed share-oriented schemes. 80g deduction is available.

HUF has the ability to operate a business alone under its own name. Although a HUF cannot become a partner, any of its members may do so in order to represent the HUF in the partnership business. Any property, including a residence, may be owned by a HUF. Additionally, it may get a home loan to pay for residential property and receive tax advantages under Section 80 C for the repayment of a home loan up to Rs. 1.50 lakh when combined with other qualifying purchases. Additionally, under Section 24, it may deduct interest paid on loans used to purchase, contract for, repair, or upgrade its property.

A good piece of information on section 80g of income tax act.

Income tax regulations limit the number of properties a taxpayer may claim as self-occupied to two. When more than two properties are owned and are used for personal purposes, the taxpayer must select any two of the remaining properties to be used for personal purposes; the remaining properties are presumed to have been rented out. 

The taxpayer is required to provide fictitious rent for tax on the property(ies) that are presumed to have been leased. Please note that nominal rent is not nominal rent; rather, it is the projected market rate for the property. As a result, your HUF may own two more homes that are self-occupied. You are not required to pay tax on these properties since their worth is considered to be zero. As long as the taxpayer did not already own more than one residential property on the date of the sale of the relevant asset, other than the one being acquired to claim the exemption, an individual or HUF may be eligible to claim an exemption under Section 54F for long-term capital gains on the sale of any asset other than a residential home. You can evade the application of this restriction by holding a second home in the name of HUF.

An HUF is qualified to deduct some expenses under Section 80C just like an individual, including life insurance premiums on the lives of its members. People frequently find that the Section 80 C claim limit has been reached due to mandatory payments like school fees, home loan repayments, and employee provident fund contributions, leaving only a small number of expenses for which a claim cannot be made because the Section 80 C claim limit has already been reached. You can thus pay the premium from your HUF account and receive a tax credit to prevent this overflow. The wait is over for the matter on 80g of income tax act.