The quantity of Hindu Undivided Families (HUFs) availing tax advantages below the Income Tax Act stood at nearly 8.76 lakh in 2022-23, the bottom in no less than 5 years. The impact on their tax remedy below a Uniform Civil Code (UCC) has not but been examined, the Finance Ministry knowledgeable Parliament on July 25.
Responding to a question on whether or not the Government has assessed the impact of Uniform Civil Code on tax advantages to HUFs within the nation from Janata Dal MP Ram Nath Thakur, Minister of State for Finance Pankaj Choudhary stated there was no such evaluation “as there is no such Code at present.”
Under the Income Tax Act, an HUF is handled as a ‘person’ and is assigned a separate entity for the aim of evaluation. Under Hindu Law, an HUF is a household which consists of all individuals lineally descended from a standard ancestor and consists of their wives and single daughters. Jain and Sikh households, despite the fact that they aren’t ruled by the Hindu Law, are additionally handled as HUFs below the Act.
While there have been greater than 9.25 lakh HUFs who availed tax advantages in 2020-21, this quantity dropped to round 8.77 lakh in 2021-22 and additional to a bit of below 8.76 lakh households final yr.
