Sec 54 exemtion

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Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2015 Can assessee buy a property from its own HUF to save on LTCG exemptions under section 54.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

18 April 2015 it will be like paying from one pocket to another pocket of same person and scrutiny may be conducted as intentionally trying to fabricate the transaction to evade tax...its not tax planning.

Querist : Anonymous

Querist : Anonymous (Querist)

19 April 2015 Does law prohibit to do such transactions?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

19 April 2015 The law does not prohibit such transactions but practically it is not so easy.
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You may have to start a new planning for HUF if by selling the property HUF becomes liable to CG Tax.
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You have to consider the Market Value of the said property. Stamp duty of 6-8% will be payable on the Sales Consideration. This may be a costly affair.
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We have to think about the Individual's share in the Property of HUF and provisions of partial partition also.
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