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Hindu Undivided Family income tax slabs and rates ahead of Budget 2026

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By Sangeeta Ojha

2 min read | Updated on January 28, 2026, 08:20 IST

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SUMMARY

HUF income tax slabs and rates explained ahead of Budget 2026. Check HUF taxation under old and new tax regimes, default regime rules, and key implications for taxpayers.

huf tax slabs budget 2026

As Budget 2026 approaches, any change in personal income tax slabs or marginal rates would typically apply to HUFs as well. | Image: Shutterstock

A Hindu Undivided Family (HUF) is a legal tax-saving structure under Indian income tax law, widely used for income splitting and long-term wealth management.

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Under the Income-tax Act, a HUF is treated as a separate taxable entity, distinct from its individual members.

For income tax purposes, a HUF broadly follows the same slab rates as individual taxpayers. HUF income taxation is similar to individual taxation under both the old tax regime and the new tax regime, with slab rates remaining identical irrespective of whether the HUF is resident or non-resident.

HUF tax slabs under the new tax regime

Under the new tax regime, the applicable HUF income tax slabs for FY 2025–26 are:

  • Income up to ₹4 lakh: Nil

  • ₹4 lakh to ₹8 lakh: 5%

  • ₹8 lakh to ₹12 lakh: 10%

  • ₹12 lakh to ₹16 lakh: 15%

  • ₹16 lakh to ₹20 lakh: 20%

  • ₹20 lakh to ₹24 lakh: 25%

  • Above ₹24 lakh: 30%

HUF tax slabs under the old tax regime

Under the old tax regime, HUF slab rates are:

  • Income up to ₹2.5 lakh: Nil

  • ₹2.5 lakh to ₹5 lakh: 5%

  • ₹5 lakh to ₹10 lakh: 20%

  • Above ₹10 lakh: 30%

The Finance Act, 2024, amended Section 115BAC with effect from AY 2024–25, making the new tax regime the default tax regime for Individuals, HUFs, AOPs (other than co-operative societies), BOIs and Artificial Juridical Persons. However, eligible taxpayers, including HUFs, retain the option to opt out and choose the old tax regime, which allows various deductions and exemptions.

As Budget 2026 approaches, any change in personal income tax slabs or marginal rates would typically apply to HUFs as well. Taxpayers will closely watch whether the government rationalises slabs, raises exemption thresholds, or further incentivises the new tax regime.
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About The Author

sangeeta-ojha.webp
Sangeeta Ojha is a business and finance journalist with vast experience across leading media platforms, including Mint and India Today. Passionate about personal finance, she has built a reputation for covering a wide range of PF topics—from income tax and mutual funds to insurance, savings, and investing.

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