Indexation benefit for capital gain tax

'A' acquired shares in 2009 as his share in his late father's holding.

He transferred these shares to his HuF in the year 2022.

Huf sold these shares immediately to meet urgent contengencies.

Will huf get benefits of indexation? TIA
Replies (4)
Quick Summary
This discussion explores whether a Hindu Undivided Family (HUF) can claim the benefit of indexation on capital gains tax when shares are transferred to it and then immediately sold. While there are favourable case laws supporting the HUF's right to indexation, some rulings have gone against the assessee. This means while relief is possible, especially at the ITAT level, there's a risk of disallowance at the initial assessment stages.

Possible
Yes huf can get benefit of indexation

this is a litigated matter. Various case laws in favor of the assessee wherein the issue cost of acquisition as well as indexation has been ruled in favor of the assessee. However, there are a few case laws where in things went against the assesee. So, if your return is picked up for scrutiny, there are chances of disallowance at AO and CIT(A) level. You may get ultimate relief from ITAT though.

Prima facie, huf can get benefit of indexation

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