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.
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.
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Hello Experts ,
Can I offset both LTCG and STCG again property purchase ?? @Sakshi_Jain @AkashJhaveri @Surbhi_Pal
Hey @Raam_M ,
You can only set off long term capital gains against the purchase of a residential property.
How can tax on ltcg on equity share can be saved by reinvesting of the profit amount without investing the profit amount in property
Hi @Vikash689 ,
LTCG on equity shares can only be saved by reinvesting the gains in a housing property which is mentioned under section 54F of the Income Tax Act, 1961.
Hello Team,
My query is regarding 54F section. I own a residential apartment (Original purchase year 2015) and bought another one in Aug 2024 by selling MFs in July 2024. The entire proceeds of the MFs were utilized in the new apartment. Can I offset the MF long term capital gain for purchase of the new apartment?
Thank you - Amit
Hey @jainamit22
According to Section 54F, long-term capital gains from any asset can be exempted if you invest in one residential property within one year before or two years after realizing the gains. However, at the time of investment, you must not own more than one residential property. Since you own an apartment and have used the long-term capital gains from mutual funds to purchase a new property within the specified timeframe, you qualify for the exemption under Section 54F. You can offset the gains against the purchase of the new property.
Thank you so much for your response. Can we also utilise the capital gains made on the MF in the last year against the purchase of this property?
Hey @jainamit22
You can utilize long-term capital gains from the previous year if the gains are invested in the Capital Gains Account Scheme before filing the income tax return for the same year.