Long Term Capital Gain exemption ON SALE OF MUTUAL FUND INVESTED IN PURCHASE OF FLAT

This query is : Resolved

K.G.Shah

K.G.Shah (Querist)
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05 June 2024 Mr A has booked Flat in 2018 under subvention scheme (where no EMI till possession) .

Till date out of 75 lakh he had paid only 5 lakh and for balance 70 lakh loan emi will start after possession.

Flat possession is likely to get in March 2025.

Mr A is having long term mutual fund gain about 50 lakh .

Can he sold mutual fund them and repay loan in Mar 25 and claim for income tax as long term gain invested for purchase of flat ?

Please advise

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 June 2024 Yes, he will be eligible, if done before getting possession.

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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05 June 2024 Hello Dhirajlal Sir,
In the apparrent case how will he fall under Sec 54F clause,

Since he has not purchased a ready flat 1 year before the sale of Asset nor he is purchasing a ready flat within 2 years after the sale of asset, as he already done purchased a under construction property 6 years Back i.e. 2018.

How will he be eligible u/s 54F

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 June 2024 I rely upon....
https://taxguru.in/income-tax/section-54-purchase-date-possession-flat-assessee-pays-final-consideration.html

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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05 June 2024 Ok Sir thank you sharing the judgment .

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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05 June 2024 So if in case it is taken up for assessment, it wont be allowed at lower level I guess.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 June 2024 We can claim at least 70 lakhs on lower side.