– Sagar Guntupalli

Tax benefit on repayment of interest on housing loan can be claimed on second house which would be treated as let-out or deemed to be let-out. However, from 2017-18, the maximum loss under the head “Income for House property” which can be set off against other head of income cannot exceed Rs 2,00,000. Till 2016-17, loss arising from a let out property could be set off against other head of income without any limit.

How should I link my Hindu Undivided Family (HUF) PAN to Aadhaar of karta?

—Karan Khanna

The PAN of an HUF can be linked to the Aadhaar of karta. The karta would need to visit the income tax portal, login into the HUF profile and go to the ‘Link Aadhar’ under profile setting and fill in the details of the Aadhaar of the karta.

From tax planning perspective, should I opt for specific beneficiary trust (private trust) or HUF? I am a salaried person with a a minor daughter.

— Arun Majumdar

Both the options have their own merits and demerits. Income of a private specific trust, not having any business income, is assessed in the hands of the trustee(s),
as a representative assessee. HUF is taxed as a separate entity and income of HUF is taxed at the normal slab rates. An author of the trust has the freedom to decide
on the beneficiaries, whereas HUF should have members as governed by the Hindu laws. Trust arrangement has the advantage of choosing a non-family member as trustee compared to HUF, where the senior most family member is the karta of the HUF.

If my total income is less than Rs 2.5 lakh, should I link my PAN and Aadhaar?

– Rajan S Malik

Assuming your total taxable income for FY 2016-17 is below Rs 2.5 lakh, as per income tax provisions it is not mandatory to file return of income. But as per the announcements made by finance ministry, every person who has been allotted PAN as on July 1, 2017 and who is eligible to obtain Aadhaar number shall link the Aadhaar number with the PAN, failing which the PAN would become invalid from the date notified by the government.

The writer is tax partner & India Mobility Leader, EY India