Dear sir,
I have learnt from the discussion above - As the bank is not willing to finance the property in the name of HUF. I have to take the property in the name of the two adult members (cited in the initial query) of the HUF. This will allow me to avoid paying LTCG on sale of property.
Now I can do it in two ways:
a. Dissolve the HUF before the registery of the sale take the proceeds and invest as individuals in joint name by availing home loan and avail relief under sec 54 now and avail tax benefits from home loans in our respective IT Returns in future and show future income in indl IT Returns.
b. Do not dissolve the HUF, take the proceeds and as adult members of the HUF invest in our joint name by availing home loan and avail relief as HUF under sec 54 also show the future income from this property as HUF income and HUF avails tax benefits from home loan.
Which is the legal way?
In both cases the loan will be given by the bank to self and wife as co-applicants.
In both the cases the provisional certificate from the bank will not mention HUF but our names.
Can I still use the certificate for fiing HUF ITR?
CAclubindia
