ABC is a salaried professional and karta of ABC (HUF); and needs Home Loan.
1. ABC (HUF) takes overdraft against FD from bank at x% rate and pass the sum to ABC as Interest Free Home Loan :- In this case can either ABC or ABC(HUF) claim Income Tax benefit of Home Loan?
2. If ABC (HUF) take overdraft against FD from bank at x% rate and pass the sum to ABC as x% Interest Home Loan :- ABC can take benefit of Interest paid on Home Loan (upto limit); but will the interest paid by ABC to ABC (HUF) be taxable in hands of ABC (HUF)? Also, will TDS need to be deducted by ABC on the interest paid ?
Looking forward to your responses.