Returns and Forms Applicable for Hindu Undivided Family (HUF) for AY 2024-2025  

Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines please refer Income Tax Act, Rules and Notifications.

3. ITR-4 (SUGAM) - Applicable for Individual, HUF and Firm (other than LLP)

This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business or Profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE) and income from any of the following sources: Salary / Pension One House Property Other sources (Interest, Family Pension Dividend etc.) Agricultural Income up to ₹ 5,000   Note:  ITR-4 cannot be used by a person who: (a) is a Director in a company  (b) has held any unlisted equity shares at any time during the previous year  (c) has any asset (including financial interest in any entity) located outside India  (d) has signing authority in any account located outside India  (e) has income from any source outside India (f) is a person in whose case payment or deduction of tax has been deferred on ESOP (g) who has any brought forward loss or loss to be carried forward under any head of income (h) has total income exceeding Rs. 50 Lakhs   Please note that ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business and Profession on presumptive basis u/s 44AD, 44ADA or 44AE.

 Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS will now be available in AIS mentioned below.

Tax Slabs for AY 2024-2025

The Finance Act 2023 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI  or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, you taxpayers have the option to claim various tax deductions and exemptions.

In case of "non-business cases", option to choose the regime can be exercised every year directly in the ITR to be filed with return of income on or before the due date specified under section 139(1).

In case of eligible taxpayers having income from business and profession and wants to opt out of new tax regime, the assessee would be required to furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA.

However, in case of eligible taxpayers having income from business and profession  option to switch to old tax regime and withdraw the option in any subsequent AY  is available only once in lifetime.

Tax rates for HUFs (resident or non-resident) during the previous year are as under: Old Tax Regime New Tax Regime u/s 115BAC Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate Up to ₹ 2,50,000     Nil Up to ₹ 3,00,000 Nil ₹ 2,50,001 - ₹ 5,00,000     5% above ₹ 2,50,000 ₹ 3,00,001 - ₹ 6,00,000 5% above ₹ 3,00,000 ₹ 5,00,001 - ₹ 10,00,000 ₹ 12,500 + 20% above ₹ 5,00,000 ₹ 6,00,001 - ₹ 9,00,000 ₹ 15,000 + 10% above ₹ 6,00,000 Above ₹ 10,00,000  ₹ 1,12,500 + 30% above ₹ 10,00,000 ₹ 9,00,001 - ₹ 12,00,000 ₹ 45,000 + 15% above ₹ 9,00,000     ₹ 12,00,001 - ₹ 15,00,000 ₹ 90,000 + 20% above ₹ 12,00,000     Above ₹ 15,00,000 ₹ 1,50,000 + 30% above ₹ 15,00,000 Note: 1. The rates of Surcharge under the two tax regimes are as under:       Total Income Old Tax Regime New Tax Regime Rate of Surcharge Applicable Up to Rs. 50 Lakh Nil Nil Above Rs. 50 Lakh and up to Rs. 1 Crore 10% 10% Above Rs. 1 Crore and up to Rs. 2 Crore 15% 15% Above Rs. 2 Crore and up to Rs. 5 Crore 25% 25% Above Rs. 5 Crore 37% 25% Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E. Note: The rates of Surcharge and Health & Education cess are same under both the tax regimes

Surcharge, Marginal Relief and Health & Education Cess 

What is Surcharge? Surcharge is an additional charge levied for persons earning Income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates. The rates of Surcharge under the two tax regimes are as under:  Total Income Old Tax Regime New Tax Regime Rate of Surcharge Applicable Up to Rs. 50 Lakh Nil Nil Above Rs. 50 Lakh and up to Rs. 1 Crore 10% 10% Above Rs. 1 Crore and up to Rs. 2 Crore 15% 15% Above Rs. 2 Crore and up to Rs. 5 Crore 25% 25% Above Rs. 5 Crore 37% 25% What is Marginal Relief? Marginal relief is a relief from Surcharge, provided in cases where the Surcharge payable exceeds the additional income that makes the person liable for Surcharge. The amount payable as Surcharge shall not exceed the amount of income earned exceeding ₹ 50 lakhs, ₹ 1 crore, ₹ 2 crore or ₹ 5 crores respectively as under: Net Income Range Marginal Relief Exceeds (Rs.) Does not exceed (Rs.)   50 Lakh 1 Crore Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs 1 Crore 2 Crore Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore 2 Crore 5 Crore Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore 5 Crore  - Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore. What is Health & Education cess? Health & Education cess @ 4% shall also be paid on the amount of income tax plus Surcharge (if any)

 

Investments / Payments / Incomes on which a taxpayer can get tax benefit  

Section 24 (b) – Deduction from income from house property on interest paid on housing loan and housing improvement loan. In case of self-occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2,00,000. However, this deduction is not available for person opting for New Tax Regime.

Interest on loan u/s 24(b) allowable is tabulated below:
 

Nature of Property	When loan was taken	Purpose of Loan	Allowable Interest  (Maximum limit)
Self-occupied	On or after 01/04/1999	Construction or purchase of house property	₹ 2,00,000
	On or after 01/04/1999	For Repairs of house property	₹ 30,000
	Before 01/04/1999	Construction or purchase of House property	₹ 30,000
	Before 01/04/1999	For Repairs of house property	₹ 30,000
Let-Out	Any-time	Construction or purchase of house property	Interest without any limit

 

Tax deductions specified under Chapter VI-A of the Income Tax Act 

These deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115 BAC.

80C
Deduction towards payments made to  Life Insurance Premium Provident Fund Subscription to certain equity shares Tuition Fees National Savings Certificate, Housing Loan Principal Other various items	Combined deduction limit of ₹ 1,50,000

 

80D

Deduction towards payments made to Health Insurance Premium & Preventive Health check up For Self / Spouse or Dependent Children Deduction limit is  ₹ 25,000 (₹ 50,000 if any person is a Senior Citizen) ₹ 5,000 for preventive health check up, included in above limit For Parents Deduction limit is  ₹ 25,000 (₹50,000 if any person is a Senior Citizen) ₹ 5,000 for preventive health check up, included in above limit Deduction towards medical expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage For Self /  Spouse or Dependent Children Deduction limit is ₹ 50,000 For Parents Deduction limit is ₹ 50,000

 

80DD
Deduction towards payments made towards Maintenance or Medical Treatment of a Disabled dependent or paid / Deposited any amount under relevant approved scheme.	Flat deduction of ₹ 75,000 available for a person with Disability, irrespective of expense incurred. The deduction is ₹ 1,25,000 if the person has Severe Disability (80% or more).

Note: If  you are claiming deduction u/s 80DD, it is recommended to file form 10-IA also before filing of return. Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.

80DDB
Deduction towards payments made towards Medical Treatment of Self or dependant for specified disease.	Deduction limit of ₹ 40,000 (₹1,00,000 if Senior Citizen)

 

80G
Deduction towards donations made to prescribed Funds, Charitable Institutions, etc. Donation are eligible for deduction under the below categories Without any limit 100% deduction 50% deduction Subject to qualifying limit 100% deduction 50% deduction Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2,000/-

 

80GGA

Deduction towards donations made for Scientific Research or Rural Development Donation are eligible for deduction under the below categories: Research Association or University, College or other Institution for Scientific Research Social Science or Statistical Research Association or Institution for  Rural Development Conservation of Natural Resources or for Afforestation PSU or Local Authority or an Association or Institution approved by the National Committee for carrying out any eligible project Funds notified by Central Government for Afforestation Rural Development National Urban Poverty Eradication Fund as setup and notified by Central Government  Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2,000/-

 

80GGC
Deduction towards donations made to Political Party or Electoral Trust	Deduction of total amount paid through any mode other than cash

 

80TTA
Deduction on interest received on saving bank accounts by Non-Senior Citizens	Deduction limit of ₹ 10,000