Sec 54 f of income tax

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This query is : Resolved

RAJU (Querist)

19 July 2019 Dear Sir

I am having Long Term capital gain of Rs 15 lakhs from the sale of shares and mutual funds in FY 18-19 .

I have booked a flat under construction with a builder and the hand over will be in 2021 . I am paying the installments as mentioned in the agreement . I may also avail a loan also for this flat . I don't have any other residence in my name The query is

1 Can I claim deduction under Sec 54 F while filing my ITR for 2019-20 AY ? even if I am using the part from Bank loan ?

2 There is a time clause mentioned in the act . But the capital gain was generated on different dates on different transactions . The counting of the dates set by the Act will start from the end of the FY (31-03-2019) or the individual dates which was spread over FY 2018-19

Thanks

Raju

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 July 2019 1 54F exemption not available for capital gains on shares and mutual funds. Pay 10% tax on such gains.
2 Consider individual dates.

RAJU

RAJU (Querist)

20 July 2019 Dear Sir
Income tax act mentions that Sec 54 F exemption is available for the transfer of any Long Term capital asset except Residential property . In that case LTCG from shares also will be allowed ? Please advice

Thanks

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