Hi I have invested in 8 different mutual fund schemes and now I am planning to redeem those investments (LTCG) to buy a housing property. Can I credit these principal and gains in capital gains account for tax exemption at different interval of time as I am planning not to redeem the mutual fund investment simultaneously. How can I claim the tax exemption on gain in sec 54 F.
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LTCG and Income tax section 54F
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MF redemption and 54F:
• LTCG on mutual funds (equity or debt) is a "long-term capital asset other than a residential house", so Sec 54F applies: invest the net consideration (not just the gain) in one residential house, within the time limits (purchase 1 year before or 2 years after, or construct within 3 years).
• Condition: you mustn't own more than one residential house (other than the new one) on the date of transfer.
• The exemption is proportional if only part of the net consideration is invested.
• Note: debt MF units bought after 1 April 2023 are deemed short-term (Sec 50AA), so 54F isn't available for them.
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