Can an HUF buy an immovable property? What are the exemptions accessible to it, if the property is self-occupied by the members of HUF? The karta of HUF is residing along with his household in a home which is within the identify of his spouse and claiming HRA deduction. Now, can he buy one residential property within the identify of HUF for funding function. What are the exemptions accessible as regards curiosity on residence mortgage and principal reimbursement?
Answer: Yes, an HUF should purchase and personal any variety of properties by its Karta. An HUF can have most of two properties as self-occupied properties in case these are literally occupied by the members of the family. In case the HUF owns greater than two properties and these are occupied by the members for his or her use, the HUF has to deal with any two properties as self-occupied and remainder of the self-occupied properties shall be handled as deemed to have been let loose and notional hire in respect of such deemed to have been let loose properties must be provided for tax even no hire is acquired in respect of such properties. So you should purchase any variety of properties on behalf of your HUF both for self-occupation function or as an funding.
Like an Individual an HUF may declare deduction for reimbursement of residence mortgage beneath Section 80C upto Rs. 1.50 lakh along with different eligible gadgets. It may declare deduction beneath Section 24(b) for curiosity paid on cash borrowed to amass the home property. The deduction beneath Section 24(b) is restricted to Rs. 2 lakhs for max of two self-occupied homes taken collectively. If the property is let loose the HUF can declare deduction for full curiosity for cash borrowed topic to restriction on its eligibility to set off of losses beneath the “Income from House Property” head towards different heads of earnings as much as two lakhs through the yr. The unabsorbed losses beneath home property for the yr may be carried ahead and set off towards home property earnings in subsequent eight years.
Balwant Jain is a tax and funding skilled and might reached on [email protected] and @jainbalwant on Twitter.
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