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LTCG exemption u/s 54F

periasamy (DGM Finance) (91 Points)

24 March 2022

Sir,

To claim Capital Gain income tax exemption u/s 54F, if there is any sealing in amount for the exemption. I guess the limitation of Rs. 2 Crores is only for the second time claim in life term. Please experts clarify.

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hemant sharma (141 Points)
Replied 24 March 2022

Under section 54 investment in two house property when capital gain arising from trasfer of residential house property is available once in life time subject to such capital gain should not exceeds 2 crore

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.

*net consideration invested in purchase or construction of house property

exemption =
capital gain * amount invested/net sale consideration

additional condition under sec 54f
one the date of trasfer of ltca assessee should not more than one residential house property