| Question And Answer | |
|---|---|
| Subject: | Thakkar |
| Category: | Income-Tax |
| Querist: | Hitesh Thakkar |
| Answered by: | Law Intern |
| Tags: | section 54 deduction |
| Date: | December 14, 2025 |
We own a 4Bhk flat under two names Mine and my father’s HUF,
Building is to go into Redevelopment and 79 A will be signed,
Wanted to understand is it possible, advisable, Tax efficient to split the flat into two 3Bhk flats
One in each name , what will be the tax implications for the same ?
Yes, it is legally possible to split your 4BHK flat into two 3BHK flats (one in your individual name and one in your father’s HUF name) during the redevelopment process. This will require approval of the Society and the Builder and also the BMC.
The split will not attract any tax implications as it will be a “family settlement’, recognizing the inherent rights of the parties.
The handing over possession of the old flats to the developer will attract tax u/s 45(5A). However, exemption u/s 54 can be claimed as the sale proceeds of the old flat are reinvested in the new flats.