Huf assessment

If he like to claim Income from house property than the fund of HUF used for purchase of the land must be shown as loan to KARTA and register the land in the name of KARTA in his personal capacity.

I agree with CS. Bijoy

Show it as a loan by the HUF to the Karta and treat the  income from that property in the hands of the Karta.

By showing income under HP in the hands of the Karta, you will also be able to reap the benefit of deductions u/s 24(b) and 80C as weill.

Regards

CA. Sidharth Sahni

sir, 

here land is already accounted for in 2006, but construction on such land started in 2010, so it is unable to shown as loan to individual for purchase of land.

finally,is it valid to show construction in individual books? where to claim income from house property, in individual returns, or huf  returns? where to claim inerest on bank loan and principal repayment u/s 80c

Agrred with above replies

Show Purchase of land as loan from HUF and show property in the hands of Karta (in personal capacity)

& income from house property (rental income) is to add in the income of karta (as property is now in the name of karta)

sir, 

here land is already accounted for in 2006, but construction on such land started in 2010, so it is unable to shown as loan to individual for purchase of land.

finally,is it valid to show construction in individual books? where to claim income from house property, in individual returns, or huf  returns? where to claim inerest on bank loan and principal repayment u/s 80c

I think this will solve your purpose

Land is on the name of karta, it means karta is the owner of that land,

Therefore, the huf funds invested in land is the investment of huf in land, and now huf is selling out its investment to karta...

& The house property income is chargeable in the hands of deemed owner which is karta

sir, you mean, to claim interest and principal repayment , it needs sale of land to individual, if it so it attracts long term capital gain to huf,                      if gift of land by huf to individual, it attracts, income from other sources to individual (receiver, as without consideration immovable property value exceeds 50000 as per sec 56).

is there any alternative ?