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HUF or Individual Filing: Construction Expenses in Both?

T S Khurana

T S Khurana   |241 Answers  |Ask -

Tax Expert - Answered on Nov 08, 2024

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more
Asked by Anonymous - Nov 05, 2024Hindi
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Sir, Income tax payer construction building in individual status.some construction expenses paid through on huf status Question: Assessess huf status construction expenses show procedure in huf or individual itr returns

Ans: Your question is not clear, however, I assume that an Individual is constructing a house from his individual sources plus some payments through HUF accounts. If this is correct, then my answer is :
01. You can construct a house from your own resources. The amount which has been paid or financed by HUF, shall be treated as a loan to you. This loan is returnable (transactions through banking channels only).
02. You may file your ITR considering above. ITR of HUF will show only loan given to the member.
Most welcome for any further clarifications. Thanks.
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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