How to save taxes using HUF?

Income Tax Tax Savings & Deductions
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  1. Income is not to be clubbed for the initial corpus. It’s capital contribution, not income.
  2. After Formation, Clubbing will be applicable in some cases and not in some.

Ignore reply of @CA_Anand_Thakor , It’s misleading.

Please refer @Surbhi_Pal 's reply here - Forming HUF and its taxation - #2 by Surbhi_Pal
That’s actually correct information.

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Setting up a separate tax entity like a Hindu Undivided Family (HUF) lets you allocate investment income under the HUF’s PAN. Since initial contributions aren’t clubbed as individual income, it can reduce your personal tax burden though clubbing rules may apply later.

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You can save taxes using a Hindu Undivided Family (HUF) by splitting family income and assets under a separate PAN, reducing individual tax liability. HUFs can claim deductions and exemptions just like individuals, helping optimize overall family tax savings.