Home Loan to HUF

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?

Best solution is to purchase bonds for gain portion under sec 54EC.

Anuj

+91-9810106211

Sir,

Lets say, this option is something against which decision has been taken.

The property route is the one that has been opted for.

I have purchased one property which is under the name of person + HUF. The person is now divorced and has no child. Now the bank is denying to sanction the loan because of the HUF property. According to them the person is divorced and has no child therefore he is now not the owner of this property. What should be the alternative to this so that bank can sanctioned a loan against that property?

According to them, he should transfer the property to his name first and only loan would be sanctioned. What else could be done here?