Information about 54F

Income Tax Income from Capital Gains
1

Can someone throw some light on applicability of Capital Gain Tax exemption under section 54/54F in the following situation:

  1. I and my husband jointly owned two residential properties at different location.
  2. I and my husband both separately earned long term capital gains by selling equity shares / equity scheme mutual funds during the FY 2024-25. We have purchased third house in our joint name in the month of Jun 24.
  3. Now my question is - Can I get capital gain exemption under Section by offsetting it against purchase value of newly acquired 3rd property. Thanks in advance for all who desired to help me
2

Hey @Kunjalmanishparekh

You won’t be able to claim the exemption under Section 54, as it applies only to the sale of a residential house property. For Section 54F, you must not own more than one residential property at the time of selling shares. Since you already own two properties, you cannot offset your capital gains by purchasing a third property.

Hope this helps!