HUFs default to new tax regime starting April 1 2026
Starting April 1, 2026, Hindu Undivided Families (HUFs) will move to the New Tax Regime by default.
This means lower tax rates but also fewer deductions and exemptions compared to the old system.
If you're part of an HUF and earn business or professional income, you'll want to think twice before sticking with the old regime: there are some important choices ahead.
HUFs lose deductions, switching restricted
Under the New Tax Regime, popular deductions like Sections 80C and 80D, home loan interest for self-use, and house-property loss set off are gone.
HUFs are not eligible for the Section 156 rebate.
If your HUF has business or professional income, you can withdraw the option and return to the New Tax Regime only once; after that, it generally cannot choose the old regime again unless it ceases to have business or professional income.
Anyone opting for the old structure must follow Rule 136 when filing returns, so comparing your tax bill under both regimes is definitely worth it before making a decision.