Exemption u/s 54f

Hello,

I shall apreciate if someone can help me with following queries about LTCG

One of our client is going to sell his inharited Agriculture land .. . . which is <8 Km of municipal limit. . so I think it will be a taxable transfer. .but

Q-1 Can we claim exemption u/s 54F if he buys a house in the name of his HUF ? [ he has got one house in village near that agri land.]

Q-2 What if he buys new residential house in the name of his wife ? or his son ?, can we still claim exemption U/s54F ?

Q-3 What if he transfer his Agri land to his son's name before sale and then his Son will invest in residentail house to get exemption u/s 54F ? can we do this planning ?

I shall be gratful for you quick kind reply.

Kind Regards

PN Godhani

Dear Sir

Transfer of any agriculture land within the local limits as specified in income tax act is taxable under the head "income from Capital gain".

To avoid the capital gain liability,

1.Gift that property in the name of his wife before tranfer to any buyer.

2. Sale deed should be signed in name of his wife with buyer

3. deposit the all sale consideration on or before due date of filing income tax return in schedule bank as "Capital Gain Account Scheme"

4. Buy a residential house property within 2 yrs or contruct a residential house within 3 years from transfer of property.

5. if you don't deposit/Invest the whole sale consideration or pard sale consideration is deposited/invested than exemption will be count proportionatly.

Example. Capital Gain = Amount invested or deposited

Net Sale Consideration