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54f

Tax planning 134 views 7 replies

Ravi Gupta

None

69 Points Joined June 2012

Respected All,

I have a plot A which is in the name of my huf. I want to sell this plot and use a part of the proceeds to construct a house on plot B which is in the name of individual. I went to a lawyer and he said that I can not get exemption under section 54 F. Is he right. ? Also if he is right, can I transfer the plot B in name of huf by way of gift before selling plot A. And then after selling plot A, use a part of the proceeds to construct house on plot B. Then will I be able to get an exemption under section 54 F. Also the other conditions of the section are satisfied. Please let me know.

Thanxxx in advance :)

Replies (7)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197044 Points Joined July 2016

The lawyer is correct. You can gift plot B before or even purchase it from ownself to HUF, to utilize more sell proceeds from sell of plot A.

Ravi Gupta

None

69 Points Joined June 2012

Sir, that means after that I will be able to get Exemption under section 54 f for construction of house. . ? ?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197044 Points Joined July 2016

Yes, you can, provided HUF does not own more than one house on the date of sale of plot A. Secondly, you just need to make a deed of permission of use on long term of plot B, by individual to HUF.

Ravi Gupta

None

69 Points Joined June 2012

Thank you very much sir.. :) Just one last question, does that mean I don't have to execute a gift deed..?? Because a hefty amount of stamp duty is charged on gifts. .