Sec 54f and sec 64(2) related query

Tax planning 546 views 9 replies
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Retired Senior Citizen
66 Points Joined October 2014

My Son has a plot in Haryana bought about 10 years ago from HUDA.  Now he has another 2 residential flats in India apart from this plot.

He intends to gift this plot to HUF of which he is a member and his father is the Karta. The HUF has no other residential property in its name. On the sale of this plot, will the HUF be able to claim Long Term Capital gains benefit benefit under Sec 54F assuming that the entire LTCG sale amount is reinvested in a residential house in the name of the HUF ? The provisions of Sec 64(2) also need be considered.

Look forward to expert advice.

God bless you

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On 04 September 2019 at 20:35 Report
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27910 Points Joined May 2017
Read Sec 54 (F)
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On 04 September 2019 at 21:08
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525 Points Joined April 2017
yes HUF will get exemption u/s 54F on sale of plot and acquiring residential House property.

if net sale sale consideration fully invested then full LTCG shall exempt.
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On 04 September 2019 at 21:15
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Retired Senior Citizen
66 Points Joined October 2014

Thank you for your reply. However would the clubbing provision in Sec 64(2) not come in?

Please advise.

Thanks 

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On 04 September 2019 at 22:16
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525 Points Joined April 2017
I think no because HUF is not in his name who transferred the capital asset.
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On 04 September 2019 at 22:38
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Retired Senior Citizen
66 Points Joined October 2014

Can I speak to you?

If yes kindly give your number please.

You may call me too at 95555 65777 at your convenience.

With gratitude.and thanks.

 

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On 04 September 2019 at 22:53
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17264 Points Joined December 2018
If a member of the HUF gifts a property owned by him to the HUF, then any income earned from such property shall be taxable in the hands of the individual by virtue of Section 64(2).
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On 04 September 2019 at 23:15
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45 Points Joined December 2015
yes, clubbing provison will apply and accordingly LTCG will taxable in hands of transferor(son)
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On 05 September 2019 at 00:16
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17264 Points Joined December 2018
@ Jag Mohan
The gift route won't help from tax angle. The exercise will be futile.
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On 05 September 2019 at 11:06
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14 Points Joined February 2017
huf cannot claim 54f on ltcg because he got gift from his son & any benefit rec or ltcg will be club in sons income according section 64 clubbing of income in income tax
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On 05 September 2019 at 16:33


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