HUF tax benefits: Can salaried individuals use it to save tax?

A Hindu Undivided Family (HUF) is a separate taxable entity under the Income Tax Act, allowing tax optimization on income from inherited assets, businesses, or investments. However, salaried individuals cannot route salary or personal business income through an HUF, as clubbing provisions reattribute such income to the individual. Transfers without adequate consideration trigger clubbing, and loans must be genuine with formal agreements.