Purchase of new residential house by huf u/s.54f

This query is : Resolved

CA.Monik Dedhia (Querist)
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29 June 2012 Dear Expert,

My client has sold a piece of Land which was in the name of HUF and want to purchase another residential house in the name of HUF itself. But karta of the same is already possessing 2 residential house property.

can i claim deduction u/s 54F as HUF And karta is different entity.

Regards,

Monik Dedhia.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 June 2012 HUF and the karta of the HUF are separate legal persons.

If HUF has sold a piece of land and wants to claim exemption u/s 54F, the HUF has to fulfill the conditions and not the Karta thereof.

If the Karta owns more than one house property, it will not disentitle the HUF from claiming HUF becuase the HUF DOES NOT own any other residential house property.

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