Income Tax Filing for HUF (Hindu Undivided Family) 

A Hindu Undivided Family (HUF) as a unique legal and tax entity. This means that Hindu, Buddhist, Jain, and Sikh families can be taxed as one unit. The Karta runs it, and the HUF pays taxes on money made from shared ancestral property or business activities. This arrangement is perfect for families who share property, a business, or investments.

Why You Should File Your HUF Income Tax Return

Filing a HUF income tax return filing helps families keep track of their money and save on taxes. The HUF is a separate taxable entity, so it can claim HUF tax exemption and HUF deductions on its own, not through its members.

• Two tax benefits: HUF and its members can each use their own basic exemption limits.

• More people can claim deductions: Claim under Sections 80C, 80D, 80G, 54, and 54F.

• Efficient family asset management makes it easier to pay taxes on inherited property, investments, or business income that is shared.

• Getting the most out of your taxes: HUF tax breaks and exemptions can help you lower your tax bill. You can also use HUF funds in PPF, ELSS, or fixed deposits for HUF investment planning and HUF tax saving schemes.

Documents Required for HUF ITR Filing

You will need the following to file your HUF return filing online:

• HUF PAN Card: You must have a separate PAN.

• The HUF Deed shows the Karta, coparceners, and family structure.

• HUF Bank Account: This is where you keep track of all your money coming in and going out.

• Proof of income can include rent receipts, interest income, capital gains, or business income.

• Investment Proofs: LIC premiums, mutual fund investments, or PPF statements that you can use to get Section 80C deduction for HUF.

• Asset and Liability Details: a list of the family's assets and debts.

• Receipts for expenses or donations, which are needed for exemptions under 80G and similar sections.

ITR Forms for HUF (FY 2027–28)

ITR Form for the Right Case:

• ITR-2: HUFs with a salary, capital gains, or other income (not from a business or profession)

• ITR-3 HUFs with business or professional income (keeping records)

• ITR-4 Sugam HUFs that choose presumptive taxation under Sections 44AD, 44ADA, or 44AE and have an income of up to ₹50 lakh

Latest Updates for FY 2026–27

• Small HUF businesses now have higher presumptive taxation limits under Sections 44AD and 44ADA.

• For easier compliance, AIS/TIS data is now pre-filled in HUF e-filing.

• HUFs can now choose based on total deductions and tax advantage, which gives them more flexibility in the old and new regimes.

Benefits of Filing HUF Income Tax Return

• Considered a separate taxpayer, which means more exemptions.

• Deductions are available under sections 80C, 80D, 80G, and 54F.

• Under HUF rules, gifts of up to ₹50,000 are tax-free.

• Exemptions for capital gains when reinvesting.

• Complete HUF filing process including Audit filing if applicable.

• Makes it easier to manage family wealth and property.