Proceeds from Mutual Funds used for buying house will it be Liable to Long term capital gains

Proceeds from mutual funds are subject to long-term capital gains tax if they're not exempt or if the gains exceed the exemption limit.

However, if you're using the proceeds to purchase a house, you might be able to claim exemption under Section 54 of the Income Tax Act.¹

 To qualify for exemption, you must invest the long-term capital gains in a residential house within two years from the date of sale of the mutual fund units.

 Additionally, the exemption is only available if you haven't owned more than one residential house, other than the new one, on the date of transfer of the mutual fund units.

Regarding joint ownership, yes, you can purchase a house jointly with family members.

The ownership structure you described, where B has the first ownership, followed by A and C, is possible.

 However, the tax implications would depend on the individual ownership shares and the tax laws applicable to each owner. In terms of taxation, each co-owner would be required to report their share of the income or gains from the property in their individual tax returns.

If the property is sold, each co-owner would be liable for capital gains tax on their share of the gains, based on their individual ownership percentage.