Section 54F income tax exemption on sales of commercial property

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This query is : Resolved

Rajesh Topiwala (Querist)

03 May 2026 am i able to get section 54F in income tax, if i am having two houses of 50% in total on sales of commercial property on the date of sales ?one property of 50% ownership and second co ownership flat in inheritance but on paper it is not transferred to me. first holder who has contributed expired.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

03 May 2026 Section 54F is available on sale of a long-term commercial property if the net sale consideration is invested in a residential house, subject to fulfilment of conditions.

The main condition is that on the date of sale, the assessee should not own more than one residential house other than the new house proposed to be purchased/constructed.

In your case, since one property is 50% owned and the second property is inherited but not transferred on paper, the facts need careful review. Mere co-ownership may be arguable, but inherited beneficial ownership may still be considered by the department depending on documents, succession position, and actual ownership rights.

Therefore, Section 54F may be claimed only if it can be established that you do not own more than one residential house on the date of sale. Please verify title documents, inheritance/succession papers, and ownership records before claiming the exemption.

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