Claim audit · FY 2026-27
“Open an HUF and get a second tax-free slab”
The condition that decides it
HUF is a real separate person — but only for genuine joint-family income/corpus. Salary or professional income routed into it stays yours; property you transfer in is clubbed u/s 64(2). Works for ancestral assets, fails as a salary-parking device.
What the department sees
Both ITRs, bank trails, source of HUF corpus
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
An HUF can be a separate person under section 2(31), but the arithmetic starts with ownership and source, not a second slab slogan. If genuine ancestral or joint-family income is ₹6,00,000, that income is tested in the HUF’s return. If a member’s ₹6,00,000 salary is merely credited to the HUF, the source remains personal salary and the claimed split is ₹6,00,000 − ₹6,00,000 = ₹0 shifted. If a member transfers property to the HUF, section 64(2) clubbing can return the income to the transferor. Section 171 concerns partition, so records of corpus, bank trails and both ITRs matter. The reel implies a freely available duplicate tax-free allowance; the statute produces a separate taxable person only for genuine joint-family income or corpus. Any final tax saving then depends on the applicable slab and the deductions actually available to the HUF.
Questions people actually ask
Sections: 2(31), 64(2), 171 · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims