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 :)

[DR.MARIAPPAN GOVINDARAJAN]

What your lawyer says is correct.

AI Summary

Section 54F exemption unavailable when HUF asset proceeds fund a house on an individual's plot, advisor confirms. Whether capital gains from sale of a plot held by an HUF qualify for the capital gains exemption when the new residential house is constructed on a plot held in an individual's name; taxpayer queried if gifting the target plot to the HUF before sale would help. The respondent confirmed the taxpayer's lawyer that the exemption is not available on the facts presented, noting other statutory conditions were stated as satisfied but offering no further detail.