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A Hindu Undivided Family (HUF) must file its own income tax return annually, separate from the Karta's personal ITR. It files ITR-2 for investment income or ITR-3 for business income, with a due date of 31 July 2026 (non-audit) or 31 October 2026 (audit required).

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HUF / Hindu Undivided Family

HUF Annual Filing: Income Tax Return, Deductions and Compliance Guide for FY 2025-26

By Tradeviser Editorial • Updated October 2026 • 10 min read

A Hindu Undivided Family (HUF) is one of the most underutilised tax-saving structures available to Hindu families in India. As a separate legal entity under the Income Tax Act, an HUF has its own PAN, files its own ITR, and can claim the full basic exemption limit and section deductions independently of the Karta’s personal tax position.

Despite being legally straightforward to operate, many families with existing HUFs miss annual filing deadlines or fail to claim available deductions: either because they assume the HUF needs no separate attention, or because the compliance is left entirely to their chartered accountant without the family understanding their own obligations.

This guide covers the complete annual compliance requirements for an HUF for FY 2025-26.

HUF is a separate taxpayer: The HUF files its own income tax return completely independently from the Karta’s personal ITR. A Karta with both personal income and HUF income files two separate ITRs every year: one as an individual, one as the representative assessee of the HUF.

Key Takeaways

  • HUF files ITR-2 (investment/property income) or ITR-3 (business income)
  • Due date: 31 July 2026 (no business) or 31 October 2026 (with business requiring audit)
  • HUF gets its own basic exemption limit (Rs. 2.5L old regime; Rs. 3L new regime) independently
  • Under the old tax regime: 80C (Rs. 1.5L), 80D, 80G deductions available
  • Under the new tax regime (Section 115BAC): most deductions not available, but lower tax rates apply
  • HUF deed is not legally required to exist but is practically essential for banking, PAN, and tax compliance

Which ITR form does an HUF file and what are the due dates?

Income Type ITR Form Due Date (FY 2025-26)
Investment income, house property, capital gains, other sources (no business)ITR-231 July 2026
Business or profession income (including partner in firm); or ITR-2 income with business income addedITR-331 October 2026 (if tax audit required) or 31 July 2026 (if no audit)

Who signs the HUF ITR? The Karta (the eldest male coparcener, or the eldest female coparcener if there is no male coparcener) signs and verifies the ITR as the representative assessee of the HUF. The Karta’s personal DSC or Aadhaar-based OTP is used for e-verification. If the Karta is absent from India, another coparcener may sign.

What are the HUF tax slabs under old vs new regime for FY 2025-26?

An HUF has the same basic exemption limit and tax slabs as an Individual (non-senior-citizen). It does not get the higher exemption available to senior or super-senior citizen individuals.

Income Slab Old Regime Rate New Regime Rate (Sec 115BAC)
Up to Rs. 2,50,000NilNil
Rs. 2,50,001 to Rs. 3,00,0005%Nil
Rs. 3,00,001 to Rs. 5,00,0005%5%
Rs. 5,00,001 to Rs. 6,00,00020%5%
Rs. 6,00,001 to Rs. 9,00,00020%10%
Rs. 9,00,001 to Rs. 10,00,00020%15%
Rs. 10,00,001 to Rs. 12,00,00030%15%
Rs. 12,00,001 to Rs. 15,00,00030%20%
Above Rs. 15,00,00030%30%

Plus 4% Health and Education Cess on the tax amount. Surcharge applies if total income exceeds Rs. 50 lakh (10% surcharge) up to Rs. 1 crore, and higher rates above that. The new tax regime is the default from AY 2024-25 onwards; the HUF must opt into the old regime at the time of filing ITR.

What deductions can an HUF claim under the old tax regime?

Under the old tax regime, an HUF can claim several deductions that effectively reduce its taxable income, stacking on top of the individual Karta’s own personal deductions:

Section Deduction Limit
80CLIC premium for members, ELSS, PPF (HUF member accounts), housing loan principal repaymentRs. 1,50,000
80DHealth insurance premium for HUF membersRs. 25,000 (Rs. 50,000 if insured members include senior citizens)
80GDonations to eligible charitable institutions (50% or 100%)As per qualifying limit of institution
54 / 54FCapital gain exemption on sale of residential property / other assets if proceeds reinvestedAs per applicable limit
24(b)Interest on housing loan for HUF property (self-occupied or let out)Rs. 2,00,000 (self-occupied); no limit (let out)
New regime note: Under Section 115BAC (new regime), the HUF cannot claim 80C, 80D, or 80G deductions. The standard deduction is not available to HUFs even under the new regime (it is only for salaried individuals/pensioners). Evaluate both regimes annually, especially if the HUF has significant 80C-eligible investments.

What types of income can an HUF earn?

  • Rental income: Rent from HUF-owned property is HUF income, not the Karta’s personal income.
  • Business income: Profits from a business managed by the Karta on behalf of the HUF.
  • Capital gains: Gains on sale of HUF assets (property, shares, mutual funds in the HUF’s name).
  • Interest income: FD interest, savings account interest in the HUF bank account.
  • Dividend income: Dividends from shares or mutual funds held in the HUF’s name.
  • Share from firm profits: The HUF’s share of profit from a partnership firm (where the HUF is a partner through the Karta) is exempt from tax in the HUF’s hands under Section 10(2A).
Clubbing rules apply: If an HUF transfers assets to members without adequate consideration, the income from those assets is clubbed back into the HUF’s income. The HUF also cannot use the Karta’s self-earned income as HUF income; only ancestral or family property contributions form the HUF corpus.

What is an HUF deed and who are the Karta and coparceners?

HUF deed: A declaration document (typically notarised, though not mandatorily registered) that establishes the HUF’s existence, names the Karta, lists all coparceners, and records the corpus contributed. Required practically for: obtaining PAN, opening a bank account, and establishing the HUF’s separate identity before the Income Tax Department.

Karta: The eldest male coparcener (by birth) manages the HUF. After the Hindu Succession (Amendment) Act 2005, daughters born in the HUF are also coparceners with equal rights, but the Karta role traditionally remains with the eldest male or (if no male is alive) the eldest female coparcener.

Coparceners vs members: Coparceners have a birthright in HUF property and can demand partition. Members (wives of coparceners) have maintenance rights but not a birthright in HUF property and cannot demand partition.

HUF bank account: Opened in the name of the HUF (e.g., “ABC HUF” or “Ram Kumar HUF”) with the Karta as the operating signatory. The account requires the HUF deed, PAN of the HUF, and KYC of the Karta.

How is an HUF dissolved or partitioned?

An HUF continues until all coparceners jointly agree to partition (divide the HUF assets). Either a full partition (complete dissolution) or a partial partition (division of specific assets) is possible.

  • Full partition: All HUF property divided among coparceners in their respective shares. The HUF ceases to exist. PAN must be surrendered; a final ITR is filed for the period from 1 April to the date of partition.
  • Partial partition: Only specific assets divided; HUF continues with remaining assets. Partial partition is not recognized by the Income Tax Act (Section 171) unless proved to the Assessing Officer’s satisfaction.
  • Tax on partition: Distribution of HUF assets to coparceners on partition is not taxable as capital gains in the hands of the HUF (Section 47(i)). However, the coparcener’s cost of acquisition for future sales is determined as the HUF’s cost.

Annual compliance checklist for HUF

Task Due Date (FY 2025-26)
Advance Tax 1st instalment (15% of estimated tax)15 June 2025
Advance Tax 2nd instalment (45% cumulative)15 September 2025
Advance Tax 3rd instalment (75% cumulative)15 December 2025
Advance Tax 4th instalment (100%)15 March 2026
ITR-2 (investment/property income, no business)31 July 2026
ITR-3 (business income, no audit required)31 July 2026
ITR-3 (business income, tax audit under Section 44AB)31 October 2026
Review regime selection (old vs new) before filingBefore ITR filing deadline
TDS reconciliation (match Form 26AS, AIS)Before ITR filing
GST compliance (if HUF has business turnover above threshold)Monthly/quarterly as per GSTIN

HUF Tax Filing and Planning Support

Tradeviser helps families set up and manage HUFs: ITR-2/ITR-3 filing, old vs new regime comparison, deduction planning, deed preparation, and TDS reconciliation, so your family maximises its tax position each year.

Talk to a Tax Expert

Frequently Asked Questions

Which ITR form does an HUF file?

ITR-2 for investment/property/capital gains income (no business); ITR-3 for business or professional income. Most investment-holding HUFs use ITR-2 (due 31 July); HUFs with business income use ITR-3 (due 31 October if tax audit applies).

Is an HUF deed mandatory?

Not legally mandatory, but practically essential. Without a deed, you cannot open a bank account, get a PAN, or demonstrate the HUF’s separate existence to the tax department. Get a notarised deed even if not registered.

Can an HUF claim Section 80C deductions?

Yes, under the old tax regime: up to Rs. 1.5 lakh via LIC premiums, ELSS, PPF contributions for HUF members, and housing loan principal. Under the new tax regime, 80C is not available to the HUF.

What happens when the Karta dies?

The HUF continues. The next senior-most male coparcener becomes Karta. The HUF only dissolves when all coparceners agree to a full partition and divide the assets. A final ITR is filed for the period up to the dissolution date.

Can an HUF carry on a business?

Yes. The Karta manages the business on behalf of the HUF. Business income is taxed as HUF income (separate from the Karta’s personal income). The HUF can also be a partner in a partnership firm through the Karta: its share of firm profit is exempt under Section 10(2A).