TaxTMI 
TaxTMI 
Comprehensive Guide to Tax Deductions for HUFs Under Chapter VI-A for AY 2024-25
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....omprehensive Guide to Tax Deductions for HUFs Under Chapter VI-A for AY 2024-25<br>By: - RAHUL MODI<br>Income Tax<br>Dated:- 22-6-2024<br><br>Tax planning is an essential aspect of managing finances for Hindu Undivided Families (HUFs). For the Assessment Year (AY) 2024-25, various deductions are available under Chapter VI-A of the Income Tax Act, 1961. This article provides a detailed overview of ....
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....these deductions, enabling HUFs to optimize their tax savings effectively. Section 80C: Popular Tax-Saving Investments HUFs can claim deductions up to ₹1,50,000 under Section 80C on specific investments and expenditures. Key options include: * Life Insurance Premiums: Premiums paid for life insurance policies for any member of the HUF. * National Savings Certificates (NSC): Investments....
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.... in NSCs. * Equity Linked Savings Scheme (ELSS): Investments in specified mutual funds. * Principal Repayment on Housing Loan: Principal repayment on loans taken for buying or constructing a residential property. * Fixed Deposits: Tax-saving fixed deposits with a tenure of 5 years or more. It is important to note that contributions to the Public Provident Fund (PPF) are not available for HU....
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....Fs. HUFs cannot open new PPF accounts, and existing ones are not eligible for further contributions. Section 80D: Health Insurance Premiums Premiums paid for health insurance for family and HUF members qualify for deductions under Section 80D: * Basic Deduction: Up to ₹25,000 for premiums paid for any member of the HUF. * Senior Citizens: An additional ₹50,000 if the insured memb....
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....er is a senior citizen. Section 80DD: Maintenance of Disabled Dependents This section provides deductions for expenses incurred on the maintenance and medical treatment of a dependent with a disability: * Regular Disability: Up to ₹75,000. * Severe Disability: Up to ₹1,25,000. Section 80DDB: Treatment of Specified Diseases Expenses for the medical treatment of specified disease....
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....s can be claimed under Section 80DDB: * Basic Deduction: Up to ₹40,000. * Senior Citizens: Up to ₹1,00,000. Section 80G: Donations to Charitable Institutions Deductions under Section 80G are available for donations made to specified funds and charitable institutions. The deduction percentage (50% or 100%) depends on the specific institution and fund. Section 80GGA: Donations for....
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.... Scientific Research or Rural Development Donations made for scientific research or rural development are eligible for deductions under Section 80GGA. Section 80GGB: Contributions to Political Parties Contributions made to political parties or electoral trusts can be claimed as deductions under Section 80GGB. Section 80TTA: Interest on Savings Bank Accounts Interest earned from savings accoun....
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....ts can be deducted up to ₹10,000 under Section 80TTA. Section 80U: Person with Disability HUFs with a member who has a disability can claim deductions under Section 80U: * Regular Disability: Up to ₹75,000. * Severe Disability: Up to ₹1,25,000. Conclusion: Maximizing Tax Savings By understanding and utilizing these deductions, HUFs can significantly reduce their taxable i....
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....ncome and save on taxes. Each section has specific conditions and requirements, making it crucial to review them in detail or consult with a tax professional to ensure eligibility and proper claiming of deductions.<br> Scholarly articles for knowledge sharing by authors, experts, professionals ....