Zerodha co-founder and CEO Nithin Kamath sheds light on tax savings, stating, “If you’re married and a Hindu…”
Zerodha co-founder and CEO Nithin Kamath sheds light on tax savings, stating, "If you're married and a Hindu..."
Nithin Kamath, the co-founder and CEO of Zerodha, talked about the advantages of something called a Hindu Undivided Family (HUF). This is a special legal and tax arrangement in India for Hindu families. It helps people save money on taxes.
He explained that if you’re married and Hindu, you can use HUF to save on taxes. HUF is treated separately for tax purposes. So, things like property that earns rent, having a stock trading account, putting money in a bank account under HUF, or receiving gifts, all these can be managed under HUF for tax benefits.
A friend was asking me about taxation for Hindu Undivided Families (HUF).
— Nithin Kamath (@Nithin0dha) March 27, 2024
If you're married and a Hindu, you can use a HUF to plan and save your taxes. HUF is treated as a separate entity, so all these deductions will apply separately to HUF along with the individual…
Nithin also shared a video and a blog explaining how HUF works for tax planning. HUF is considered like a “person” under the tax laws in India. It has its own tax ID and files taxes separately from its members.
Even though HUF is mainly for Hindu families, Jain and Sikh families can also create HUFs to enjoy the tax benefits.
People on social media, including business leaders and former government officers, supported HUF as a great way to save on taxes.
Amit Misra, CEO of Dazeinfo, said that HUF isn’t just about saving taxes, it can really change the game for married Hindus by helping them control their finances for a better future.
Former IAS officer KBS Sidhu suggested that every Hindu who gets married should create an HUF. He clarified that it’s not necessary to have a son to form an HUF. Also, people from Sikh, Jain, and Buddhist backgrounds can also benefit from HUF.
