Section 54F Exemption: Can You Buy a House Now, Sell Shares Later?
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Moneycontrol•21-01-2026, 21:00
Section 54F Exemption: Can You Buy a House Now, Sell Shares Later?
- •Deepak Jain from Noida wants to sell shares by March 2026 but buy a house this month, seeking Section 54F exemption on Long Term Capital Gains (LTCG).
- •Tax expert Balwant Jain confirms individuals/HUFs can claim Section 54F exemption by using proceeds from selling any long-term capital assets (excluding residential houses) to buy a new house.
- •For a ready-to-move-in house, it must be bought within two years after selling the asset or one year before the sale.
- •For constructing a house or buying an under-construction property, the taxpayer gets three years to complete construction.
- •Deepak can buy a house in January and claim exemption on shares sold until March 2026, as the purchase is within one year prior to the asset sale.
Why It Matters: You can buy a house up to one year before selling shares and still claim Section 54F LTCG exemption.
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