HUF Related Capital Gain

[M Saran]

Dear Netizens ,

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

An ancestral house is sold by a person on his name situated in a Village. The sale proceeds is received through an account payee cheque in the name of his two sons.

Can the person who sold the House claims that it is a partition of HUF but no PAN no is allotted to the person in capacity f karta. 

Is any capital gain provisions attract to said persons or his sons.????

[Rama Krishana]

HUF property would remain taxable in the hands of HUF on transfer.

Exemption u/s 54 can be availed by the HUF only.

AI Summary

Exemption Claim Under Section 54 Denied for Ancestral House Sale; Taxable as HUF Property Without Karta's PAN. A query was raised regarding the claim of exemption under Section 54 for an ancestral house sold by an individual, with the proceeds received by his two sons. The question was whether the sale could be considered a partition of a Hindu Undivided Family (HUF) despite the absence of a PAN number for the karta. The response clarified that the property remains taxable in the hands of the HUF upon transfer, and only the HUF can avail the exemption under Section 54.