1)I have huf 2) now I want to purchase new house 3) banks are not ready for loan if deed mention hug but they are ready if deed will be individual name of mine or my wife or both. 4) they are ready if my huf become co borrower 5) they are ready to disburse the funds to my huf a/c & also ready to issue a interest & repayment certificate to my huf. 6) now I want to know whether my huf a/c claim deduction u/s 80c & 24(b)
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HUF can claim tax deduction under section 80 C
For purchase a house property on bank loan and claim principal amount of loan paid
2) HUF as per section 24 of the Income-tax Act is also entitled to claim deduction for interest on self occupied house property of Rs. 1,50,000 in a year.
3) HUF cannot get any deductions if it is not a co-owner in the property. Just being a co-borrower does not give any right to claim this tax benefit.
Section 80C
Under section 80C, a deduction of Rs 1,50,000 can be claimed from your total income. In simple terms, you can reduce up to Rs 1,50,000 from your total taxable income through section 80C. This deduction is allowed to an Individual or an HUF.
The HUF as per section 24 of the Income-tax Act is also entitled to claim deduction for interest on self occupied house property of Rs. 1,50,000 in a year.
Please bear in mind that HUF should be the co-owner and not the co-borrower to claim such benefits.
Tax Benefit on Home loan under section 80C for Loan Principal Payment, Section 24 for Interest Payment, Tax planning of Home Loan & HRA.. The HUF as per section 24 of the Income-tax Act is also entitled to claim deduction for interest on self occupied house property of Rs. 1,50,000 in a year.
Hi,
Yes, the HUF can claim deduction under section 80C and 24(b).
Regards,
Keerthiga Sharma
M.Com., CA, LL.B
