Section 54F of Income Tax Act: Capital gains tax exemption

Ever since the long-term capital gains tax on equities has been re-introduced, investors often write to us asking if there is a way to do away with it. In one of the recent emails that we have received, our subscriber mentioned that he is planning to buy a house after selling his investment in equity shares. He specifically pointed out towards section 54F of the Income-Tax Act and asked if the same can be used to claim an exemption on the capital gains by buying a house. The short answer to the question is, yes, you can. But certain conditions are attached to it. The biggest being, you should not own more than one residential house exclusive to the one you are purchasing to claim this exemption. Further, you are

This article was originally published on July 07, 2022.