The parents who would be purchasers cannot claim s 54 benefit 

Only the vendors/sellers can claim such benefit provided other conditions of s.54 are fulfilled 

Yes

Daughter is at liberty to sell flat standing in her and her husband name to her parents 

she had her husband can claim benefit of long term capital gains 

Section 54 of the Income Tax Act offers capital gains exemption to individuals or Hindu Undivided Families (HUFs) selling residential property in India. This provision allows them to reinvest the sale proceeds in another residential property, thereby avoiding capital gains tax.

Thus this privilege is available only for the sellers of the immovable property and not for the buyers. 

To qualify, the property sold should be a long term capital asset specifically a residential house. 

The capital gains from the sale must be reinvested in purchasing another residential house. The property purchased can either be an under-construction property or a ready-to-move-in house.

The reinvestment can happen in two ways:

a. Purchase of a New Property;

b. Construction of a New Property;

Parents can buy property from daughter and son in law and claim tax benefits 

you have to pay full stamp duty on sale consideration 

If the parents are desirous of purchasing the property from their daughter or anyone out of the proceeds that they obtained by selling their another residential property, the section 54 of income tax is very well applicable for them to claim exemption from paying the long term capital against tax.

The stamp duty exemption is available only for transfer by gift deed or relinquishment deeds or partition deeds and not for sale deed even if it is between the daughter and father.

According to the Maharashtra government provision, currently a 1% discount is offered on stamp duty to women homebuyers in the entire state including in Mumbai. However, the caveat is the house has to be purchased in the name of women home buyer.

Stamp duty applicable 

The sellers can be anybody. Even relatives. 

Full stamp duty will have to be paid even if bought from relatives 

Dear Client,

When selling property to parents in Mumbai, it's important to consider tax implications and benefits under Section 54 of the Income Tax Act. Section 54 allows individuals to claim capital gains tax exemptions if they reinvest the proceeds in another residential property within a specified period. However, such benefits typically do not apply when selling to family members like parents. Therefore, while the parents can buy the property from their daughter and son-in-law, they would not qualify for Section 54 benefits on capital gains tax exemptions.

Additionally, regarding stamp duty, Maharashtra may offer concessions for property transfers to immediate family members. It's advisable to verify the specific stamp duty rates and any available concessions with the local Sub-Registrar's office to understand the financial implications of the transaction fully. This approach ensures compliance with tax laws and helps manage costs effectively when transferring property within the family.

- Selling of property will attract stamp duty even it is made to family members , and only by way of Gift deed in favor of daughter can save stamp duty. 

- Yes, the parents can take benefit of section 4.