Capital gain exemption under section 154F

hello,

section 154F , if i purchase a plot and construct house on it. total of purchase of plot and construction cost will be allowed as deduction?
Replies (2)
Quick Summary
This discussion clarifies capital gains tax exemption under Section 54F of the Income Tax Act. It explains that if the full sale consideration from an asset is reinvested in a new house, the entire capital gain can be exempted. If only a portion is reinvested, a pro-rata exemption is available, calculated using a specific formula involving the reinvested amount and net sale consideration.

It is section 54F if full consideration received is reinvested then full amount is exempted.

otherwise formula for claiming exemption u/s 54F is
LTCG*Amount reinvested/Net sales consideration
Okay Thank you.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
23 October 2026
Sr. Accountant

SANKARAN & KRISHNAN

New Delhi

B.Com

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details