Query On LTCG Tax After Selling HUF Property (FLAT)

I'll address each of your queries: 1. Reinvestment of LTCG by HUF: Yes, HUF can reinvest Long-Term Capital Gains (LTCG) in a new residential property to save income tax under Section 54 of the Income-tax Act, 1961. However: - *Time Limit*: The new property must be purchased within 2 years from the date of sale of the original property or constructed within 3 years [1]. - *Exemption Limit*: The exemption is limited to the amount of LTCG reinvested in the new property [1]. 2. LTCG Exemption under Section 54: The exemption under Section 54 is available to HUF, regardless of the Karta's individual ownership of properties. The key consideration is: - *HUF's Ownership*: HUF must not own more than one residential property at the time of sale of the original property to claim exemption under Section 54 [1]. Since HUF owns only one residential property, it can claim the exemption. 3. Home Loan to HUF: Yes, banks provide home loans to HUF. However: - *Karta's Guarantee*: The Karta may be required to provide a personal guarantee for the loan. - *HUF's Income*: The bank will consider HUF's income, including rental income, to determine loan eligibility. To ensure compliance with tax regulations and to explore home loan options, consult a tax professional or chartered accountant.