Dear Sir, 1. It is possible to gift your share of property and settle the issue, but in your case it is an exchange of gifts. So the AO may take a stand that it is actually not a Gift but a Sale of Asset and hence Capital Gain has to be paid. Which is again a debatable issue and will have to be fought out. 2. You cannot take a gift from your nephew, but he can gift it to his father and he can gift it to you. 3. You can route the money back, through your children if you want. 4. Even if you assume it to be a HUF hotchpotch, still it is a clear case of transferring an asset in exchange of waiver of loan. Which can also be termed as a Disguised Sale Transaction. So if you want to adopt this way out, I would advise you to meet a professional who should be in a position to fight it out, if your matter is selected for scrutiny. Hope this clarifies your query. Feel free to get back for further clarifications. Regards, CA Rohit R Sharma BCom, CA, LLB - Gen, Cert FAFP.