Timeline for applicability of sec 54f capital exemption

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1

I have purchased a flat on 30 April 2025 @ Rs. 60 lakhs + registration charges Rs. 4.60 Lakhs at karimnagar. I have sold around Rs. 35 lakhs of mutual funds & shares on 20 - 24 April 2025. The same amount has been used for purchase of this flat. Can I get any section 54F exemption ( capital gains) for the shares sold in between 01 April to 29 April 2026. Thanks PSR

2

Hey @psrchand,

Welcome to the community!

Yes, you are eligible to get Section 54F exemption as the timeline for purchasing a residential house to claim the exemption is:

  • When you buy a house up to 1 year before the date of sale of your shares/MFs.
  • When you buy a house up to 2 years after the date of sale.

Since you sold your shares between April 20 and April 24, 2025 and purchased the flat on April 30, 2025, the purchase happened within 2 years after the sale, so you comfortably meet the timeline criteria.

Hope this helps!

3

Dear Mdam, Thank you very much for your immediate reply on this matter. What about my shares are to be sold in between 01 April 2026 to 29 April 2026, can I get 54 F exemption or not. If yes, this capital gain is to be shown in FY 2025-26 or FY 2026-27.

Please advise.

Thanks

PSR

4

The same logic applies for shares sold between 01 April 2026 to 29 April 2026 and you get the 54F exemption. This capital gain should be shown in FY 2026-27.