How to avail benefit of section 54 F

Income Tax ITR Filing
1

I have purchased residential property in 2020 and I am getting possession now sept 2024.

If i booked the long capital let say 5 lakh rupees in FY 24-25. will i am eligible to avail benefit of section 54 F.

2

To avail the benefits of Section 54F of the Income Tax Act, invest the capital gains from selling any asset (other than a house) into purchasing or constructing a residential property within the specified time. Ensure compliance with all conditions, such as holding only one house at the time of sale to claim full exemption.

3

Hey @Dattatray_Aute ,

If you want to claim exemption u/s 54F on the purchase of a new under-construction property, the date of purchase will either be the date of allotment or date of possession.

Since you have received the possesion in Sep’24 you can claim the exemption . This is clarified in a case law of ITAT Mumbai.