An HUF is treated as a separate tax entity; it enjoys a separate basic tax exemption of Rs 2.50 lakh in addition to separate tax exemption for each of its members (normally available to individuals). This is available whether the HUF is resident or non-resident.

An Hindu Undivided Family (HUF) can help you save income tax: Here’s how.

Income tax related provisions
An HUF is treated as a separate tax entity; it enjoys a separate basic tax exemption of Rs 2.50 lakh in addition to separate tax exemption for each of its members (normally available to individuals). This is available whether the HUF is resident or non-resident. HUF can invest in various assets like house property, shares, mutual funds etc. in its own name. Just like an individual, HUF gets initial Rs 1 lakh of long term capital gains on its investments in listed share and equity oriented schemes tax free. HUF can also run a business in its own name as proprietor. Though an HUF cannot become a partner but any member of the HUF can become a partner representing it in the partnership firm.

Owning house in the name of HUF
An HUF can own any property including a residential house. It can also avail home loan to buy a residential house property and avail the tax benefits under Section 80 C for repayment of home loan upto Rs. 1.50 lakh along with other eligible items. It can also claim interest paid on money borrowed to buy/contract/repair/renovate its property under Section 24(b).

As per income tax laws a taxpayer can claim only two properties owned by him/her as self-occupied . In case more than two properties are owned and self occupied, the tax payer has to choose any two of all the properties as self-occupied and the rest are treated as deemed to have been let out. For the deemed to have been let out property/ies, the tax payer has to offer notional rent for tax. Please note notional rent is not nominal rent but is the market rent which the property is expected to fet ..

Read more at:
https://economictimes.indiatimes.com/wealth/tax/huf-can-help-you-save-substantial-income-tax-heres-how/articleshow/94213078.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst