Impact of taxation?

Since the shares are held by the daughter in her individual name, the cleanest route is that she should sell the shares from her own demat/trading account and offer the capital gains, if any, in her own ITR.

Transferring the shares to the HUF merely for sale may not help in tax minimisation. If the shares are transferred without adequate consideration, the transfer may not trigger capital gains at the gift stage, but clubbing provisions can be examined and the income/gain may still be attributable to the transferor/member.

Further, using HUF funds for renovation of a property jointly owned by daughter and her husband may create avoidable questions, because the property does not appear to belong to the HUF.

Therefore, avoid routing through the HUF only for tax planning. Let the daughter sell the shares in her own name, compute LTCG under Section 112A, use available exemption, grandfathering benefit, loss set-off and, if possible, spread the sale across financial years. Proper demat records, contract notes, bank trail and renovation bills should be maintained.