exemption under section 54

[Rakesh Bansal]

Dear Sir,

The query is regarding the claim of exemption under section 54 in the case of the HUF.

Q No.1.Can an HUF claim exemption by investing the sale proceeds for purchase of residential house in the name of the all the members of the HUF insteadaed of Karta.

Q No.2. Can the HUF claim exemption u/s 54 for investment for purchase of more than one residential houses separately in the name of the members to provide them separate dwelling unit.

AI Summary

Hindu Undivided Family Must Register Property in HUF Name for Section 54 Tax Exemption Benefits A query was raised about claiming an exemption under Section 54 of the Income Tax Act for a Hindu Undivided Family (HUF). The questions addressed whether an HUF can claim the exemption by investing in residential properties in the names of individual members instead of the HUF itself, and whether multiple properties can be purchased in the names of different members. The response clarified that the property must be purchased in the name of the HUF, as HUF and individuals are distinct entities under tax law. An HUF can purchase multiple properties from capital gains, but they must be registered under the HUF's name.