Query regarding sec 54f of it act

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My Son holds a plot in Gurgaon that he had bought many years ago. He also owns 2 built up flats. We have an HUF separately assessed to tax and the HUF holds no built up flat or house.

I intend to transfer the plot in my Son’s name to the HUF through a Transfer deed (no stamp duty is payable in Gurgaon for transfers within the family) and then sell it with the objective to reinvest the capital gains (substantial) into a built up property.

The idea of above is tax planning to come within the boundaries of Sec 54F.

Is this right and workable in your view?

Replies (5)

Due to clubbing provision, it will not be helpful.

Rather transferring a house property (not intended to sale in near future) is better option.

are you talking about sons Huf or your Huf

my HUF

if any individual transfer his asset to his hUF, then clubbing provisions will attract.


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