Sir, BANKS/FI DO NOT EXTEND HOME LOAN TO HUF. THEN HOW CAN HUF AVAIL THE BENEFIT OF INTEREST AND PRINCIPAL REPAYMENT TO BANKS/FI UNDER IT ACT??
Bank cannot refuse home loan to HUF just because it is HUF. There are other parameters to be looked into by the Bank before approving loan to HUF. If HUF deed is not clear or there are some legal loopholes then bank may refuse.
HUF, like individuals, are eligible to claim deduction for interest and principal.
Sir, But in practice banks do not extend home loans to huf.....may be legally they cannot refuse......so let me know what is the alternate
HUF is more or less like a joint property and today any moment there could be a divorce or partition in the joint family sometimes followed by years of litigation, which could create complications for the bank to recover the outstanding amount.
You may take home loan in individual name who shall be the owner of the property to avail deductions.
Sir, assuming that my individual limits are already exhausted and i want to utilise huf benefits.....then how?
If the property is purchased in the name of husband and wife, then both can avail housing loan in joint name and can claim full deduction.
Sir, leave individuls, my query is about HUF.....
Sir, Is it possible to register a property under HUF and can claim the Sec24 deduction of 2lakh for individuals seperately. What procedures should follow to avail this claim in the HUF deed.
Thanks in advance
Shreyas
CAclubindia
