Hey there financial experts and tax enthusiasts! Today, we have some interesting news to share – the impact of the Uniform Civil Code on our Hindu Undivided Families (HUFs) tax benefits. The Finance Ministry has provided their insights, so let’s take a closer look at what they had to say. Get your calculators ready as we explore this fascinating tax story together. Let’s uncover the details and understand how it could potentially affect you and your HUF.
Currently making headlines, the Government has not assessed the potential impact of the Uniform Civil Code (UCC) on the tax benefits for Hindu Undivided Families (HUFs). This is mainly because there is currently no such Code in place.
Union Minister of State for Finance Pankaj Chaudhary Comments
In response to a question in Rajya Sabha about the assessment of the impact of the Uniform Civil Code on tax benefits to HUFs in the country, Union Minister of State for Finance Pankaj Chaudhary stated that they had not conducted any such assessment due to the absence of the Code at present.
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In preparation for the 2024 General Elections, the UCC has received significant political attention. However, the Government has not proposed a concrete plan to implement a common civil code for all citizens. Despite this, in June of this year, the Law Commission of India (LCI) took action and invited public and religious organizations to share their opinions on the Uniform Civil Code. The commission also set a 30-day deadline for opinion submissions.
Understanding Tax Benefits for Hindu Undivided Families (HUFs)
The Finance Minister, Chaudhary, shared the details of how many HUFs received tax deductions under Chapter VIA of the Income Tax Act in the past five years. According to the Minister’s data, a total of 8,75,948 HUFs received these benefits in FY 2022-23. In FY 2021-22, this benefit was received by 8,77,303 HUFs.
The number of HUFs taking deductions has been decreasing year after year since 2020-21. In FY 2019-20, the number of HUFs that received tax benefits was 902,513. It rose to 925,307 in FY 2020-21 but then dropped in the following years as mentioned earlier.
The Minister also mentioned that HUFs claimed a total tax deduction of Rs 3802.86 crore in FY 2022-23, compared to Rs 3745.51 crore in FY 2021-22. In FY 2020-21 and FY 2019-20, HUFs claimed deductions of Rs 4173.75 crore and Rs 4160.93 crore respectively. This data was shared by the Minister in Rajya Sabha.
In response to the Finance Ministry’s statement regarding how the Uniform Civil Code could affect tax benefits for Hindu Undivided Families (HUFs), individuals and HUFs need to stay updated on any changes that may impact their tax planning. To easily and effectively file your taxes, consider using FileMyReturn, a dependable platform that can help you navigate through complex tax regulations. Stay informed about upcoming changes and secure your financial stability by relying on FileMyReturn for all of your tax-related requirements. Submit your returns confidently today!