Income-Tax Benefits for Individuals & HUFs for A.Y. 2026-27 (FY 2025-26)
When you’re planning your taxes for the year, knowing your reliefs can make a big difference. Whether you’re an individual or a member of a Hindu Undivided Family (HUF), the tax system gives you some helpful breaks.
Here’s a friendly guide to what you can look forward to.
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✅ Key Reliefs to Know
1️⃣Basic exemption limits:
➤ General individual/HUF: ₹ 2,50,000
➤ Resident senior citizen (60 ≤ age < 80): ₹ 3,00,000 ➤ Resident super senior citizen (age ≥ 80): ₹ 5,00,000 2️⃣Rebates under Section 87A ➤ If income ≤ ₹ 5,00,000: rebate up to ₹ 12,500. ➤ Under new concessional regime (Section 115BAC(1A)), income ≤ ₹ 12,00,000: rebate up to ₹ 60,000 3️⃣Distinct status for HUFs ➤ HUFs are treated as separate taxable entities—just like individuals in many respects 4️⃣Exempt income types ➤ For example: your share from an HUF member, partner’s profit from a partnership firm, life-insurance proceeds, PPF withdrawals, etc. Many of these totally exempt from tax, subject to conditions. 5️⃣Deductions to encourage savings / investment ➤ Section 80C/80CCC/80CCD(1): up to ₹ 1,50,000 for investments like life insurance, PF, tuition fees, etc. ➤ Additional ₹ 50,000 under Section 80CCD(1B) for NPS contributions (outside the ₹ 1.5 L limit) ➤ Capital-gains relief: e.g., reinvesting in house property to save tax under Sections 54/54F etc. 6️⃣Simplified (presumptive) taxation for small business/professionals ➤ Under Section 44AD (business) and 44ADA (profession): lower compliance burden if turnover/receipts are within threshold. Why this matters: ➤ Helps you plan how much tax you will pay (or save) before filing. ➤ Knowing exemption & deduction limits means you can structure investments and expenses optimally. ➤ If you’re part of a HUF, you get nearly same reliefs as an individual — that’s good to know for family tax planning. ➤ Avoid surprises: some incomes are fully exempt, some deduction limits apply, some schemes require reinvestment. Practical Tips ➤ Review your age-category: Are you a senior or super senior citizen? You may have higher exemption limits. ➤ Max out your 80C/80CCD investments if you haven’t already — this is one of the most common ways to reduce your taxable income. ➤ If you sold a residential property and invested the gains in a new one, check capital-gains relief options (Sections 54/54F) to save tax. ➤ If you run a small business or professional practice and qualify for presumptive scheme, see if opting in simplifies your taxes. For HUFs: treat your HUF separately for tax planning — many reliefs apply similarly. ➤ Keep documentation: For deductions and exemptions, the conditions matter (dates, limits, qualifying investment, etc.). ➤ If you earn exempt income (e.g., life insurance proceeds, PPF, etc.), make sure you qualify under the law’s conditions not all income is automatically exempt. Final Word The tax system encourages saving, investment and simplifies compliance for smaller taxpayers — both individuals and HUFs. Leverage these benefits to reduce your tax burden legally and smartly, rather than just paying more than you need to. After all, knowing your reliefs is just as important as earning income! Team- Intellex Strategic Consulting Private Limited Follow us on LinkedIn: https://www.linkedin.com/company/intellexcfo-com/ https://www.linkedin.com/company/intellexconsulting www.StartupStreets.com, www.GrowMoreLoans.com, www.GrowMoreFranchisees.com, www.intellexCFO.com, www.CreditMoneyFinance.com, www.StartupIndia.Club, www.EconomicLawsPractice.com
