54 f disallowance

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If you've claimed a Section 54F exemption for a property purchase and later sell it, the exemption can be revoked and added to your income in the year of the second purchase. The revoked capital gains will be taxed at the current financial year's Long Term Capital Gains (LTCG) rate, which is 12.5% in this case. As a senior citizen with no business income, you can pay this tax before filing your return by 31st July 2025 without incurring interest or late fees.

narayan

narayan (Querist)

30 November 2024 I had purchased a flat in aug 2023 against sale of shares and claimed sec 54 f exemption. Now I purchased another flat in nov. 2024 due to which the earlier 54 f exemption claimed in fy 23- 24 will be revoked and added to this year ie fy 24-25 income.

My query is - how much tax I will have to pay on this revoked 54 f capital gains .
Since I am a senior citizen with no income from profession or business, am I right in presuming that there will be no advance tax

Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

30 November 2024 The amount you claimed as exemption will be charged at 12.5% rate as the LTCG reversal in FY 2024-25. As you do not have income from PGBP, and being senior citizen, you can pay the tax before filing return i.e. before 31.07.2025, without any interest or late fees.

narayan

narayan (Querist)

01 December 2024 Sirji
Last year ltcg rate was 10%. Since it is last year capital gain added back this year, won't the rate be last year's ie 10 % ???

Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

01 December 2024 The LTCG is added back in current financial year, hence the current rate will apply.

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