Tarun Shah (1 Points)
23 March 2025
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(184203 Points)
Replied 23 March 2025
You are eligible to get exemption u/s. 54/F IT act, subject to some conditions..
Read:: https://cleartax.in/s/invest-multiple-capital-gains-on-buying-new-house-property
CA Rashmi Gandhi
(Chartered Accountant)
(86423 Points)
Replied 23 March 2025
Since your Long-Term Capital Gain (LTCG) is ₹24-25 lakh in FY 2024-25, you can invest in property in the next financial year (FY 2025-26) to claim exemption under Section 54 or Section 54F of the Income Tax Act.
Investment in Property (Section 54 / 54F):
If you sell a residential property and invest the LTCG in another residential property within 2 years (for resale purchase) or 3 years (for construction), you can claim exemption under Section 54.
If you sell any asset other than a residential property and invest the entire sale proceeds in a residential property, you can claim exemption under Section 54F.
Capital Gains Account Scheme (CGAS):
Since your ITR filing deadline is July 31, 2025, but you plan to invest in the next FY, deposit the unutilized LTCG in a Capital Gains Account Scheme (CGAS) before July 31, 2025, to remain eligible for tax exemption.
If you do not invest within the specified time limit, the amount will be taxed in the year it is not invested.
Holding Period:
The newly purchased property must be held for at least 3 years, or the exemption will be revoked, and the gains will be taxed as short-term capital gains.
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