HUF taxation

A Hindu Undivided Family (HUF) or a Joint Hindu Family is treated as a separate taxable entity under the provisions of sec. 2(31) of the Income Tax Act, 1961. This is in addition to an individual as a separate taxable entity. As per Indian laws, the same person can be assessed in two different capacities: as an individual and as a Karta or the leader of his HUF. The rates of income taxes for HUFs are the same as the ones applicable for individuals.