How Much Tax will be saved

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  1. Devender Thakur

    Devender Thakur New Member

    If a family consisting of Husband, wife and two childeren create HUF out of which both the parents fall in the 30% bracket of Income tax slab. Then how much tax will be saved if the rental income of HUF is 8 lac.
  2. Karan Batra

    Karan Batra Well-Known Member

    If the Rental Income is received in hands of any of the parent, as both parents are in 30% tax slab - the incremental tax would be

    8 Lac - 30% Std Ded = 5.6 Lacs.
    Tax @ 30% on 5.6 Lacs = Rs 1.68 Lacs

    If this is taxes in the Hands of HUF which does not have any other income, tax would be as follows
    8 Lac - 30% Std Ded = 5.6 Lacs.
    Deduction under Sec 80C = 1 Lacs
    Taxable Income = 4.6 Lacs

    Tax as per Slab Rates on 4.6 Lacs
    0-2 Lacs - Nil
    2-4.6 Lacs @ 10% = Rs. 26000

    If amount is received in the hands of any parent, tax would be Rs 1.68 Lacs and if received in the hands of the HUF, tax would be Rs. 26000 only. Therefore, you would be able to save Rs 1,42,000

    PS: This is an approx figure as Municipal Taxes and Int on Home Loan have been ignored for ease in computation and explanation. Edu Cess and SHEC have also been ignored.
    VAIBHAV DILIP RANE likes this.
  3. Devender Thakur

    Devender Thakur New Member

    thanks Sir
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