Regarding huf

This query is : Open

ABHISHEK AGRAWAL (Querist)
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05 January 2014 Dear Sir,
Myself, my wife and my father are in govt. services and are earning Rs.40000 each.
We have two home loans
First home is in the name of myself and my wife for which we are paying 12500 each i.e., 25000 as emi.

Second home is in the name of Myself, my wife and my father for which we are paying 9000 each i.e., 27000 as emi.

Myself and my wife are enjoying tax benefits on our first home.

My father is having tax benefits for the second home we bought.

I am planning to form HUF.

Query is -

1 Who should be karta for max tax benefits.

2 For the second home, to get maximum tax benefits, do we 3 need to transfer that home in the name of huf ?

3 If yes, than what is the procedure.

Thank you so much, waiting for your kind response

CS Advocate Abhishek Goyal

CS Advocate Abhishek Goyal (Expert)
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07 January 2014 In my view, it will not make any difference who becomes Karta, in any case you and your wife will form your own HUF right from marriage itself.
Secondly, regarding the second house, if you and your wife are co-owners and co-applicants for loan, you both can claim benefit of 80C in respect of your share of home loan installment subject to maximum of Rs. 1 lakh including the first home loan for which you both are already availing deduction.