We have an ancestral HUF property in U.P. 50% of the property is given on lease to various shop owners and balance is used for our residence. We plan to sell off this property. The HUF members in this property consist of 5 people including my father. We also have a property here in Mumbai, which is jointly owned by my father, mom and me.
Can you please help me on how I can save the Capital gain tax that will be realised by selling ancestral property. Would transfering father's share in Mumbai property to me and mom make him eligible for buying another residential property in his name and save Capital tax under section 54?
Thank you for the interest shown and helping me.
Capital gain tax query
Mudit (Employed) (33 Points)
01 October 2008