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

Capital gains exemption applies when an HUF acquires replacement residential property in its own name; multiple houses qualify.
Capital gains exemption is available to an HUF only when the replacement residential property is acquired in the name of the HUF; the Karta may execute transfer documents on behalf of the HUF. The HUF may purchase more than one residential property out of the capital gains and claim exemption for those properties, provided title is vested in the HUF.