Section 80C – Investment-Based Deductions

• Up to ₹1.5 lakh can be claimed annually by the HUF

• Eligible investments include Life Insurance Premiums paid by HUF for members

• Contributions to ELSS mutual funds in the name of Karta or members

• Principal repayment on home loan (if home is owned by HUF) is allowed

• Investment in 5-year tax-saving fixed deposits in HUF’s name is also eligible

Section 80D – Health Insurance Premiums

• HUF can claim up to ₹25,000 for premiums paid for members’ health insurance

• If senior citizens are covered, the deduction increases to ₹50,000

• Premium must be paid from HUF’s bank account to avail deduction

• Preventive health check-up expenses up to ₹5,000 (within the total limit) are allowed

• Mediclaim policies must cover members of the HUF, not outsiders

Section 80G – Donations to Charitable Institutions

• Donations made by HUF to specified NGOs or relief funds qualify for deduction

• Deduction is available at 50% or 100% depending on the charity

• Only donations made via non-cash modes are eligible above ₹2,000

• Proper donation receipts and institution registration numbers must be retained

• Some donations have qualifying limits based on adjusted gross total income

Section 54 and 54F – Capital Gains Exemptions

• Available to HUF on sale of residential property or other capital assets

• Section 54: Exemption on long-term capital gains from sale of house if another residential house is purchased

• Section 54F: Applies to sale of any other long-term capital asset if full proceeds are invested in a house property

• Exemption allowed only if the property is purchased in HUF’s name

• Must invest within specified time limits (1 year before or 2 years after)

Other Allowable Deductions

• Section 24(b): Interest on home loan up to ₹2 lakh (if house is rented or self-occupied by HUF)

• Depreciation and business expenses under Section 30 to 37 if HUF runs a business

• Interest on savings account up to ₹10,000 under Section 80TTA

• Deduction for educational scholarships paid out of HUF income is exempt under Section 10(16)

• HUF can also claim exempt agricultural income, though reported for rate purposes

Proper documentation and recording of these deductions are essential for smooth processing during return filing or assessment.