HUF owns a flat in Mumbai. This property was purchased in 2008. Now HUF wants to sell the property. At this moment HUF owns only one residential property in Mumbai. This property is generating rental income for HUF. ITR of HUF is filled every year. At this moment the Karta of HUF owns, two flats in his individual capacity. I have following queries
1) Can HUF reinvest LTCG in new flat to save income tax?
2) Since Karta of HUF owns two flats in individual capacity, LTCG exemption under Section 54 will be allowed to HUF or not? I mean, is there any rule which prevents HUF to reinvest capital gain because Karta owns two flats at the moment?
3) Does bank provide home loan to HUF?
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