Unlock Tax Savings: Section 54F for Home Buyers Selling Shares
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Moneycontrol•24-01-2026, 17:25
Unlock Tax Savings: Section 54F for Home Buyers Selling Shares
- •Section 54F allows individuals and HUFs to claim tax exemption on long-term capital gains from selling capital assets (other than residential property) if invested in a residential property.
- •To qualify, the residential property must be purchased within one year before or two years after the sale of the capital asset, or constructed within three years.
- •The exemption can be claimed for multiple transactions and over several financial years, provided the time limits for each house purchase are met.
- •Crucially, to claim the exemption, the taxpayer must not own more than one residential house on the date of selling the capital asset.
- •Even if a home loan is taken, Section 54F benefits can be availed; the exemption is proportional if the investment in the house is less than the net sale value of the capital asset.
Why It Matters: Section 54F offers significant tax benefits on capital gains from share sales when investing in a new home.
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