Purchase of immovable property by a HUF
This query is : Resolved
31 January 2011
Can a HUF purchase an immovable property. What are the exemptions available to it , if the property is self occupied by the members of HUF.
The karta of HUF is residing with his family in a house which is in the name of his wife and claiming HRA deduction.
Now, can he purchase one residential property in the name of HUF for investment purpose. What are the exemptions available as regards interest on home loan and principal repayment.
The karta of HUF is residing with his family in a house which is in the name of his wife and claiming HRA deduction.
Now, can he purchase one residential property in the name of HUF for investment purpose. What are the exemptions available as regards interest on home loan and principal repayment.
01 February 2011
Can a HUF purchase an immovable property.
Ans: Yes.
What are the exemptions available to it , if the property is self occupied by the members of HUF.
Ans: It will be treated as Self Occupied Property. And its Net Annual Value will be Zero.
Ans: Yes.
What are the exemptions available to it , if the property is self occupied by the members of HUF.
Ans: It will be treated as Self Occupied Property. And its Net Annual Value will be Zero.
01 February 2011
The karta of HUF is residing with his family in a house which is in the name of his wife and claiming HRA deduction.
The Rental Income has to be shown by the wife of Karta in Her Return of Income.
(There is no problem if karta lives with his wife & family in a house.)
The Rental Income has to be shown by the wife of Karta in Her Return of Income.
(There is no problem if karta lives with his wife & family in a house.)
01 February 2011
Now, can he purchase one residential property in the name of HUF for investment purpose. What are the exemptions available as regards interest on home loan and principal repayment.
Ans :Yes. One more house can be purchased by HUF. If HUF is having more than one house then on its option one house will be treated as self occupied and another will be treated as deemed let out property.
Interest on Housing Loan and Principal repayment will be available to HUF.
Ans :Yes. One more house can be purchased by HUF. If HUF is having more than one house then on its option one house will be treated as self occupied and another will be treated as deemed let out property.
Interest on Housing Loan and Principal repayment will be available to HUF.
02 February 2011
Sir, thanx for your valuable guidance.
I have one more doubt.
I will again present the facts of the case before you.
One of my client is a salaried employee getting HRA and claiming exemption as the house is in name of his wife.
Now he has created HUF . He is now planning to purchase a house in the name of HUF.He himself is the karta of HUF.
Now my query is what are the implications on HRA benefits as well as interest on loan and repayment of housing loan.
I have one more doubt.
I will again present the facts of the case before you.
One of my client is a salaried employee getting HRA and claiming exemption as the house is in name of his wife.
Now he has created HUF . He is now planning to purchase a house in the name of HUF.He himself is the karta of HUF.
Now my query is what are the implications on HRA benefits as well as interest on loan and repayment of housing loan.
03 February 2011
In presenting my view on this issue I would remain on defensive side which may
have some contradictions with the tax-planners.
HUF and Individual are two different persons and each of them is having an option to claim one house property as self -occupied. As such 2 SOPs.
*
But it should be supported by not only fact that no other benefits or rent is derived by the properties, but also be supported by the actual possession, usage and purposes.
*
If family is consisting of other major members also , except husband and wife, the house of HUF may be shown as SOP for the purpose of staying for guests, study purpose, Occasional Requirements, or for the purpose of residence of members of the family. The House belonging to Individual may be used for normal residence purpose.
*
In the light of above discussion if the things are not manageable, then the HUF house may be shown as let out property and
interest and loan-pmt deductions can be claimed by the HUF. Individual can continue to enjoy HRA benefits as such.
*
have some contradictions with the tax-planners.
HUF and Individual are two different persons and each of them is having an option to claim one house property as self -occupied. As such 2 SOPs.
*
But it should be supported by not only fact that no other benefits or rent is derived by the properties, but also be supported by the actual possession, usage and purposes.
*
If family is consisting of other major members also , except husband and wife, the house of HUF may be shown as SOP for the purpose of staying for guests, study purpose, Occasional Requirements, or for the purpose of residence of members of the family. The House belonging to Individual may be used for normal residence purpose.
*
In the light of above discussion if the things are not manageable, then the HUF house may be shown as let out property and
interest and loan-pmt deductions can be claimed by the HUF. Individual can continue to enjoy HRA benefits as such.
*
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- Relief u/s Section 89
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- GST Registration Horse racing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Specified Profession
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
