Deduction to save CAPITAL GAIN TAX

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This discussion clarifies how to reduce Capital Gains Tax after selling a plot of land. The user invested in both tax-saving bonds (Section 54EC) and plans to buy a new house (Section 54F). It's confirmed that claiming deductions under both sections is possible, provided the net consideration from the sale is invested appropriately, especially for the Section 54F claim.

Alpesh Patel

Alpesh Patel (Querist)
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29 February 2024 I sold open plot of land in 1.40 crore. Indexed Cost of purchase is 0.24 crore. LTCG is Rs. 1.16 Crore. I want to save capital gain tax by following exemptions.
I have purchased Tax Saving Bonds (54EC) of Rs. 50 Lakhs and want to purchase new residential house value of Rs. 70 Lakhs (Sec 54F) . Thus total investment comes to Rs. 1.20 crore.

Queries
1. Can I claim both deduction u/s 54 F & 54 EC ????
2. If investment in bonds partly and investment in new residential house party is possible??

Please help.