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Why Hindu Undivided Family is losing its charm as a tax-saving tool

Wealthy don't prefer it after courts have allowed daughters to be an equal partner in their father's HUF after marriage

Income Tax, Tax

When filing income-tax (I-T) return, you would have repeatedly come across the term Hindu Undivided Family (HUF). It was a popular entity that many families used to save tax. The I-T department treats HUF as a separate assessee. It can, therefore, get all tax deductions that are available to individuals and also file returns separately. Tax experts say that increasingly the HUF is losing its charm. “Wealthy families don’t prefer it now as the courts have ruled that daughters continue to be an equal partner of their father’s HUF even after marriage. Many families ...