A Hindu Undivided Family (HUF) operates as a separate legal and tax entity, recognised under the Income Tax Act with its own PAN and tax return. So, can HUF buy property? As such, an HUF can indeed purchase property in its own name provided the acquisition is funded from HUF resources and correctly documented as property of the HUF, not any individual member. This allows families to pool their funds to buy property that might otherwise remain beyond individual reach, while aligning with the HUF’s collective purpose.
Can an HUF Buy a House Property?
Yes, HUF can buy a property. The key factors to consider are:
Once acquired, the property becomes joint HUF property, shared among all coparceners, with the Karta (typically the eldest member) managing it on behalf of the family. This arrangement not only fosters unity in ownership but also offers noteworthy tax advantages.
Rental income, deductions on interest under Section 24(b), and principal repayment under Section 80C are all available to the HUF sometimes more efficiently than for individuals.
Legally, HUF-held property enjoys succession clarity and ease. Upon the death of the Karta or a coparcener, the property automatically devolves as per Hindu succession rules without needing a will, simplifying inheritance matters.
However, prudent management is essential: the HUF must maintain its identity through proper documentation, including a deed of declaration, separate PAN, and explicit notation that the property is held by the HUF.
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Can HUF Buy Property?
pragati
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2025-08-26T20:51:44+00:00 2025-08-26T20:51:49+00:00Comment
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