Transfer of a portion of house to huf

A gift deed can be prepared in favor of HUF in this case, however, one will have to consult a lawyer, as details of the ground floor such as sq ft, taxes etc will have to be mentioned clearly.

The owner may claim interest deduction in his ITR.

Thanks Mihir Sir,

and the ground floor rent income will be taxable in HUF ITR?

If the ground floor is sold/gifted for inadequte consideration to HUF, income from ground floor property is taxable in the hands of your client in the individual capacity.

Your client can avail deduction u/s 24b towards interest up to INR 1.5 lacs per year, in respect of the new house.

Thanks.

Then i would suggest my client to gift the ground floor on FMV to the HUF.

HUF will rent out the ground floor and rent income will be taxable in the hands of HUF.

Further on payment of interest on loan taken on property the client can claim interest showing first floor as self occupied in client's ITR

M I Right?