Hi,
I have a question regarding buying the property (flat) in name of HUF.
Background: HUF comprises of 4 members Karta, wife and 2 minor children (one son and one daughter). Karta of HUF is a salaried employee and residing in own house bought in the name of Karta and wife has another property in her name which is under construction. The wife's property is intended for taking rental benfits in future. Since wife is housewife, the rental value will save tax, since it will be the only income for wife. For investment purpose, family wants to buy another property and to avoid tax burden, we plan to buy in name of HUF.
Questions:
1. Can property be bought in name of HUF?
2. If yes, who will be the owner?. HUF, Karta or joint (Karta and Wife)?.
3. when karta and wife already have one property in their name, will this affect their tax liability?
4. if the property is let-out, rental value will come in whose's income?.
5. For making payments, should all payments be given from HUF account or can some payments be given from members?.
6. Can father of Karta (who is not HUF member) give gift to HUF entity?.
Thanks
Amit
CAclubindia
