Tax nhi dena padega agar #education #finance #tax #incometax

Section 54F of the Income Tax Act, 1961 is a section that allows tax exemption on the long term capital gains earned from selling a capital asset, other than a house property.

So, if you sell a capital asset like shares, bonds, jewellery, gold, etc. and reinvest the sale proceeds towards the purchase or construction of a house property, the returns earned on the sale of the capital asset would be allowed as an exemption from tax under Section 54F.

To claim the exemption, the sale proceeds should be used in the following manner –

To buy a new residential property one year before the date of sale of the asset

To buy a residential property within 2 years from the date of sale of the asset

To construct a residential property within 3 years from the date of sale of the asset

Do note: If you invest a part of the sale proceeds in the property, the full exemption would not be allowed. In such cases, the exemption would be available on a proportionate basis.

The amount of exemption would be calculated as follows –

– Capital gains * amount invested / net consideration

Source: Turtlemint, cleartax
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