54F Exemption

[Guest]

Respected All, I have a plot A which is in the name OK of my huf. I want to sell this plot and use a part of the proceeds to construct a house on plot B which is in the name of individual. I went to a lawyer and he said that I can not get exemption under section 54 F. Is he right. ? Also if he is right, can I transfer the plot B in name of huf by way of gift before selling plot A. And then after selling plot A, use a part of the proceeds to construct house on plot B. Then will I be able to get an exemption under section 54 F. Also the other conditions of the section are satisfied. Please let me know. Thanxxx in advance :)

AI Summary

Tax Exemption Denied: Section 54F Inapplicable When HUF Sells Plot, Proceeds Used for Individual-Owned House Construction An individual inquired about the eligibility for a tax exemption under Section 54F after selling a plot owned by a Hindu Undivided Family (HUF) and using the proceeds to construct a house on another plot owned by an individual. The lawyer advised that the exemption would not apply in this scenario. The individual considered transferring the second plot to the HUF as a gift before selling the first plot to qualify for the exemption. A respondent confirmed the lawyer's advice was correct, implying that the exemption would not be applicable under the initial conditions described.