Section 54 f disallowed will be taxed at what rate

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This discussion clarifies the tax rate applicable when a Section 54F exemption is disallowed. If you purchase a second property within two years of selling the original asset, the previously claimed capital gains exemption will be added back to your income in the year the second property is purchased. The tax rate applied will be based on the date the disallowance occurs, potentially leading to a 12.5% tax rate rather than the 10% applicable to the original transaction if it occurred before July 23, 2024.

narayan

narayan (Querist)
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13 July 2025 I had claimed 54 f last fy 23-24 of rs 74.58 lacs. shares sold on 10/08/2023 / flat purchased on 25/08/2023 .

I purchased another flat in FY 24-25 on 18/11/2024.

Since I have purchased another flat on 18/11/2024 ie within two years of sale of original asset ( sold on 10/08/2023) , understand that the capital gain of rs 74.58 lacs claimed last fy 23-24 will be added back in FY 24-25.

QUERRY - SINCE THE CAPITAL GAIN TRANSACTION TOOK PLACE BEFORE 23 JULY 2024 , WILL I BE TAXED AT 10 % LTCG

regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 July 2025 As it is added back in FY 24-25 on 18th November; the rate will be 12.5%.

narayan

narayan (Querist)
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13 July 2025 Sir
But the gains occured before 23 rd July 2024. Hence should it not be at 10 %???
Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 July 2025 The rule is when you have broke the condition/s the rate & time is applicable as per that date.

narayan

narayan (Querist)
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18 July 2025 Sir
54 f disallowed last day 23-24 - where will it be shown in itr 2

Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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18 July 2025 Disallowance is due to purchase of new flat, which is in FY 2024-25. So file it in schedule CG. If not sure better take any professional help.

narayan

narayan (Querist)
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20 July 2025 Sir
I need to claim 54 and 54 f for the new flat purchased in fy 24-25. I also need to show the 54 f disallowance of fy 23-24 taxable in fy 24-25. Where and how to show in itr 2

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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20 July 2025 https://www.efiletax.in/blog/taxassist-campaign-new-income-tax-helpdesk-for-itr-filers/

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 September 2025 Good luck...

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