Can an individual claims section 54 or 54F many times or is it just once a lifetime thing? @Surbhi_Pal
Hi recently my father and uncle died and they had land in their name so basically after their all the names of children and wife got added and we sold the land all together the agreement value was 1 cr together and we got 1/3 of my father share in my ,my mother and sister account now I. Have purchased home on my name and all money I used from my mother and sister account to pay to seller but at the time of loan bank denied to add my mother and sister name due to bad cibil as they never took loan .Now the house is on my name and have loan.The questions is can I take claim u/s 54F . As the house is purchased and all amount is used for house and we did not have any house stayed on rent and our only home is stuck in redevelopment.kindly house to save tax and the agreement value of 1 cr is showing in every one Ais on income tax site Can I claim 54f deduction or not ?
Hi,
I sold shares worth Rs. 12 lacs in last FY. Out of this, on shares worth Rs. 10 lacs I made a profit of Rs. 5 lacs. On the remaining Rs. 2 lacs, I lost 50K. I am planning to claim deduction u/s 54F. The clarifications I seek are:
- Do I need to invest entire sale proceeds of 12 lacs or only Rs. 10 lacs on which I have booked LTCG.
- If so, will I be able to carry over Rs. 50K Long term losses to the next year.
Another clarification, for some reasons, if I am not able to file my ITR by 31st July, will I still be able to claim deduction u/s 54F provided I have already invested the entire amount before 31 July
Hey @Ankit_Sharma,
You can claim deduction under Section 54 for the amount proportionate to your profit share in the property that was sold.
Hey @Hchopra,
The net LTCG will be 4.5L for the financial year. You can claim an exemption under section 54F and in order for the entire LTCG of 4.5 to be tax exempt youāll have to invest the entire sale proceeds.
Hi Surbhi,
While claiming deduction under 54F in section D of ITR- āInformation about deduction claimed under capital gainsā , the ITR form asks for an account number and ifsc code as a mandatary fields. Not sure how to fill this as I bought the house first and sold shares later (within one year) so there is no deposit to be made in any capital gains account scheme etc. Without filling these account detail , it doesnāt accept the entry. Kindly advise. Thanks
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@TeamQuicko while filing itr3 via Quicko, where do i find section to fill details of capital gain account deposit.
Hey @Shashank_Pandey,
Section 54 deductions are not supported on Quicko. Alternatively, you can download the JSON File and use the income tax utility to add this deduction and file your ITR.
@Surbhi_Pal when do I have to deposit the money in capital gain account scheme to claim deduction under section 54F. Like I have around 15lakh long term profit in my demat account and if I book it today when do I have to deposit this money and if it is to be deposited while filing my return (which would be next year before 31July 2025) until this time can I use my long term capital gains freely.
Dear Shurtika
Suppose home loan taken 8 years back but agreement and possession is within prescribed time of 2/3 years , then also exemption is not available?
If my ltcg for current financial year is more than 1.25 lacs and I am investing that amount in purchasing land for residential purpose. Can I claim exemption from tax on my ltcg.
Hey @saurabh3
Under section 54F, you can claim an exemption for long-term capital gains against the purchase of a residential property, up to the amount invested or gains realized, whichever is lower.
Hereās a detailed explanation of section 54F.
Hope this helps!
Hi @Surbhi_Pal - in the same scenario, if one was to āsellā the second property, thus bringing the tally down to 1 total, while the gain sit in CGAS account, then in the next FY book a second property - is that then allowed to claim exemption under 54F? My issue is I have one co-joint property that is developed & in possession, however another property I booked, the builder went bankrupt so while the registration was done right after sale agreement back in 2013, I still donāt have possession of the property - so on paper I have two, but in actuality just one property thus not sure how to claim 54F exemption. Thank you sincerely for your patience & expert guidance in such nuanced cases/matters.
I think the ticking of time beings from the date you sold stocks to maximum of 24 months, by which the payments need to be made from the CGAS to the builder, not 3 years like youāve mentioned (read this entire thread from the top for clarity on that) - & this is the same issue I am struggling with since most tower projects have a greater than 2 year completion timelineā¦ @Hchopra
I have a similar issue where the possession period seems to be 3.5 to 4 years from the avg selling date of LT CG stocks - so in that case, one option to still receive the tax exemption would be to pay up the entire amount in the CGAS to the builder before time as an option (even if construction completion & possession happen later on)? Please confirm this @Surbhi_Pal
Iād assume the trade off in addition to the unused amount becoming taxable plus interest as well (since the tax on this amount was technically due couple years prior)?
Hi, please provide a response to queries regarding various transactions and payments made across different financial years.
| Period | FY | |
|---|---|---|
| LTCG arising from sale of equity stocks | ||
| Transaction 1 | Jan-25 | 2024-25 |
| Transaction 2 | Apr-25 | 2025-26 |
| Payment transactions for an under construction flat | ||
| 20% of the full amount, 1st instalment | Jan-25 | 2024-25 |
| 20% of the full amount, 2nd instalment | Apr-25 | 2025-26 |
| 20% of the full amount, 3rd instalment | Jul-25 | 2025-26 |
| 20% of the full amount, 4th instalment | Oct-25 | 2025-26 |
| 20% of the full amount, 5th instalment | Jan-26 | 2025-26 |
| Property construction completion schedule | ||
| Option 1 | Jan-27 | 2026-27 |
| Option 2 | Jan-28 | 2027-28 |
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Can the LTCG arising from various transactions involving the sale of equity stocks and occurring in different financial years be considered for claiming benefits under Section 54F in different applicable financial year?
-
A new residential house shall be bought 1 year before or 2 years after selling the LTCA. A new residential house shall be constructed within 3 years after selling the LTCA. If an under construction flat is being bought then will it be considered under purchase category or construction category? If it is considered as a purchased property then sale agreement / possession must happen before Jan 2027 and if it is considered as a constructed property then sale agreement / possession must be completed before Jan 2028, Is that correct?
Yes, LTCG occurring in different financial years be considered for tax in different financial year.
Investment in under constructed property is considered under construction category and possession / sale agreement must be completed in three year i.e Jan 2028
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.