HUF has a right to spend money for maintenance and subsistence of its members

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: I find that I do not have enough funds left over by the end of the year to claim the full deduction of Rs 1 lakh under section 80C. In this regard, my father has a housing loan (in his own name). I send money to him and he pays Rs 8,000 per month to the housing finance company. I had requested the company to transfer the loan to my account so that I can claim the interest deduction but they are not agreeable to do so. I myself pay house rent of Rs 7,200 per month; but the owner of the house does not give any receipt. Can I claim HRA deduction or can I claim any deduction for paying the EMI on behalf of my father?

—Parag

1. You will get the deduction up to Rs 1 lakh only if you contribute to the avenues covered by Sec 80C; not otherwise. You may invest only so much that you can afford to.

2. The housing finance company is very much justified in not transferring the loan in your name. Even if it did, you are not eligible for the benefit since the house is in the name of your father.

3. If you do not have any proof of paying house rent, it would be difficult for you to claim any concession either u/s 10(13) against HRA or u/s 80GG if you do not get HRA.

Presently the expenses of my family are shared in my personal and my wife's files. Is it possible to apportion some or all of the expenses in my HUF file, as the money there is lying unutilised.

—Tanmay

Yes, HUF has a right to spend money for maintenance and subsistence of its members.