New Delhi, Oct. 3 -- I receive many emails from readers asking about the tax benefits available to an HUF under the current tax laws. Let us discuss

An HUF is treated as a separate tax entity under the income tax laws and thus enjoys a separate basic tax exemption of Rs. 2.50 lakhs under the old tax regime. Under the new tax regime, the basic exemption limit available is higher at 4 lakhs. As HUF is treated as a separate legal entity, it can make investments in its own name in various assets like a house, shares, mutual funds, etc.

Since an HUF can own and transact in shares and securities in its own name, it can also avail the benefit of tax-free long-term capital gains of Rs.1.25 lakh earned on listed shares and equity-oriented mutual...