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Ltcg benefit to huf if new residential property purchased in individual names of huf members

Tax queries 179 views 1 replies

Chander Malik

Doctor

26 Points Joined September 2018

My huf, currently having only two members, me and my wife, sold a residential property in 2018acquired in 2002. To save LTCG, can we buy a new residential property in our two names jointly or it has to be in huf name only. Reason is we want to avail housing loan and get interest paid income tax exemption. Housing finance is not available to huf I have been told, but have not verified from ALl Hf banks. Please help thnx

Replies (1)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

210471 Points Joined July 2016

" To save LTCG, can we buy a new residential property in our two names jointly or it has to be in huf name only."

Yes, it has to be in the same PAN to avail the exemption.

Alternatively, you can invest Capital gains part in CG sav. Bonds (u/s. 54EC), and rest part invest in new house property by availing loan from HUF and also from banks.