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Capital Gain Tax Exemption U/S.54 F

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JERRY JOHN

62 Points Posted on 22 October 2021

Dear Friends,

Please clarify whether the same money from the sale of land has to be used for making investments in house property to avail exemption u/s 54F. In this case, he paid all money for the purchase of the house property from his own savings. Later, he sold a commercial property with a capital gain of Rs.32 lakh. Can he avail exemption from capital gain tax?

Regards,

Jerry

Replies (2)

Quick Summary

This discussion clarifies whether the exact funds from selling land must be reinvested in a house to claim capital gains tax exemption under Section 54F. The consensus is that while the same money isn't strictly necessary, all other conditions of Section 54F must be met. This is relevant for individuals who used their own savings to purchase a property and later sold commercial property with a capital gain.