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TMI BlogComprehensive Guide to Tax Deductions for HUFs Under Chapter VI-A for AY 2024-25X X X X Extracts X X X X X X X X Extracts X X X X ..... Comprehensive Guide to Tax Deductions for HUFs Under Chapter VI-A for AY 2024-25 - By: - RAHUL MODI - Income Tax - Dated:- 22-6-2024 - 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 these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 in NSCs. Eq ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uity 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 HUFs. HUFs cannot open n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew 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 member is a senior citizen. Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 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 diseases can be claimed under Section 80DDB: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Scientific Research or Rural Development Don ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations 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 accounts can be deducted up to ₹10,000 under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 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 income and save on taxes. Each section has specific con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions and requirements, making it crucial to review them in detail or consult with a tax professional to ensure eligibility and proper claiming of deductions. - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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