if land is purchased using huf funds, but registered in the name of karta, to construct building on such land karta taken loan in the name of karta, building constructed using karta's own income and bank loan , builing construction is shown in karta own account books , is it valid? if valid where to claim income from house property?
2 Replies
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 27 August 2011
at the time of land purchase in name of karta, the fund is divided and karta taken his share, so the building ( house propperty) is the property of individual, and any income would be reflected in his personal incometax returns.
Ashvin Bhanderi
(ACCOUNTANT)
(59 Points)
Replied 27 August 2011
If Karta will treat Land as trustee, then income thereon will be chargeable under HUF irrispective fact of Ownership but for that Karta has to make valid agreement in writing that he is trustee of that Land...
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