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Long Term Capital Gains after purchase of property - Section 54F

30 November 2023

Hello

I purchased a property (flat) for Rs 1.5CR on 01-Oct-2023 (registration date). I already have another property that was purchased in 2020. I have long term capital gains arising from sale of foreign equity (RSU) for Rs 10 lakhs on 31-Dec-2023 and Rs 15 lakhs on 30-Jun-2024.

My understanding based on Section 54F is that I can claim exemption from tax on these long term capital gains since the property is purchased one year ago. Can someone please confirm understanding? Also apart from filing the Income Tax return, do I need to fill any other form or take any other step to claim this exemption?

Really appreciate if someone can take the time and effort to please reply.

Thanks and Regards

-AJ

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3 Replies

Manish (CA) (1122 Points)
Replied 30 November 2023

Yes, you can claim.

There’s no additional form, just mention in the relevant part of ITR about the exemption claimed u/s 54F after adding the capital gain income in the capital gain schedule.

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sabyasachi mukherjee (27129 Points)
Replied 01 December 2023

Its not purchase of one property and selling of amother one.
Its not selling of equity and purchasing a property.

Saravanan nagaraj (463 Points)
Replied 07 February 2024

To avail exemption on capital gain, you need to buy a residential property within 1 or 2 yrs but construction of the property you will have 3yrs time. However, you have sufficient residential assets. You can go to buy bonds upto Rs.50,00,000 is a limit and time duration is 6 months. You can avail capital gain exemption u/s 54.

As you mentioned RSU income received Rs.15 lakhs for next financial year. It will not be accounted into current financial year.

So, you have capital gain income only for Rs.10 lakhs. As you mentioned, you recently purchase whether it was purchased by home loan not. You can avail Pre-Interest and principle and emi interest.