LTCG on shares & purchase of new house

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Mr A sold shares, making a long-term capital gain of Rs 275,000 and purchased a new house for Rs 50 lakhs. He wants to know if he can claim the entire capital gain as exempt under Section 54F by investing the Rs 15 lakhs sale proceeds into the new property. The advice given is that he is eligible for the full exemption because his investment in the new house exceeds the sale proceeds of the shares.

Suraj

Suraj (Querist)
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30 June 2024 Dear Sir / Madam,
My query is as follows:
Mr A sold equity shares of listed companies and earned Long term capital gain of Rs. 275,000/- (Sales value Rs. 15 lakhs). He purchased a residential house property in the same year for Rs 50 lakhs.

Instead of claiming exemption of long term capital gain upto Rs. 1 lakh, Can he claim exemption of entire long term capital gain of Rs. 275,000/- by showing u/s 54F the investment of sales proceeds of equity shares of Rs. 15 lakhs in the purchase of new house property?

Kindly guide.
Thanking You,
Suraj