Error while claiming Deduction under section 54F

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A user is encountering an error when trying to claim a deduction under Section 54F for long-term capital gains from selling a plot of land. Despite purchasing a house for £15 lakhs within a week of the sale, the tax software is flagging an issue with matching deductions. The user has confirmed the sale of the plot and the purchase of the house, but the system requires the deduction claim to align with the total deductions for the specific assets. Advice suggests the user should only claim under Section 54F and that the exemption amount should be proportionate to the investment relative to the capital gain, even if the investment exceeds the gain.

Abizar

Abizar (Querist)
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27 July 2022 I have Long term capital gain of 12L from Sale of Plot and LTCG of 120K from sale of shares also STCG of 20K from shares. I have purchased House for 15 Lacs within a week of Transfer of land. When i am claiming deduction under section 54f stating purchase cost of my house to be 15lac and claiming exemption of 12 lac LTCG it is not allowing me and showing error that deduction u/s 54f claimed here should match with total of deductions claimed in respective assets.
please advice me with this error and how can i claim capital gain deduction under section 54F.

Thanking you

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 July 2022 Have you filled sale transaction of land under long term gain?

Abizar

Abizar (Querist)
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27 July 2022 Yes sir. After filling that i am having capital gain of 12L

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 July 2022 You have to claim deduction in column d. Deduction under sec. 54/54B...........
& fill the details in the bracket...

Abizar

Abizar (Querist)
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27 July 2022 I have tried filling the details in column d under section 54 and section 54F with same error. i will try to fill the details under Section 54B and update you with the status.
Thank you for your time.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 July 2022 No. Don't try wrong section.
You can claim only u/s. 54F.
Your capital gain will reduce to the investment ratio in house property.

Abizar

Abizar (Querist)
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27 July 2022 Agreed sir.. My Investment to claim CG Exemption( 15L) is higher than the amount of Capital Gains earned (12L), Please advice how much CG exemption i should claim proportionately ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 July 2022 What is your sale value of plot?

Abizar

Abizar (Querist)
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27 July 2022 Sale value of plot is 17.5 Lacs

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 July 2022 So, the LTCG gain is 12 lakhs = 17.5 L - indexed purchase cost of Rs. 5.50 L
Now when you invest 15 L u/s. 54F, your gain will reduce to 1.7143 L
It means you have to claim Rs. 10.2857 L- under sec. 54F ...

Abizar

Abizar (Querist)
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27 July 2022 Still the same error sir.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 July 2022 Need to be checked by some experience person. There is no error in the utility. We are filing such cases without any error. Get some local help..

Abizar

Abizar (Querist)
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27 July 2022 Sure. Thank you so much sir

Abizar

Abizar (Querist)
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27 July 2022 Can i send you screen shot in email ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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27 July 2022 Just one or two screenshots will not help, get help of your senior.

Abizar

Abizar (Querist)
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27 July 2022 Noted on this. Thank you