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Exemption U/s 54 after partition of HUF

Others 730 views 1 replies

Manjunath

Chartered Accountants

42 Points Joined July 2008

Dear all,

One of my clients (a HUF) has sold a property in Dec 09. he has deposited the proceeds in Capital Gain Accounts scheme and has claimed exemption U/s 54. now he has entered into an agreement to purchase a Flat and paid few instalments.

Now, the HUF is to be partitioned. My questions are

1. the deposits are transfered to member/s of HUF and they in turn get that property registered in their names then whether the claim U/s 54 will sustain?

2. Or, HUF will purchase the property and after that HUF will be partitioned and house is transfered to member/s. Whether such transfer will violate the provisions of 54.

Please clarify.

Replies (1)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

Originally posted by : Manjunath
	Dear all, One of my clients (a HUF) has sold a property in Dec 09. he has deposited the proceeds in Capital Gain Accounts scheme and has claimed exemption U/s 54. now he has entered into an agreement to purchase a Flat and paid few instalments. Now, the HUF is to be partitioned. My questions are 1. the deposits are transfered to member/s of HUF and they in turn get that property registered in their names then whether the claim U/s 54 will sustain? 2. Or, HUF will purchase the property and after that HUF will be partitioned and house is transfered to member/s. Whether such transfer will violate the provisions of 54. Please clarify.

get the property registered in same name and order of individuals as per HUF constitution, pay direct from the HUF - Capital gain deposits ............

afterwards if the HUF is dissolved and none of members sell out the same within stipulated period then its as per rules.