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Exemption amount for sales consideration under section 54F

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ANKIT KUMAR

15 Points Posted on 11 October 2025

If I have long term capital gain in last year and long term capital loss in earlier years from sale of shares. I want to claim benefit of 54F after set off of carry forward losses. What would be my sales consideration and capital gain for the purpose of claiming 54F.

Examples: Total Sales consideration for the year: 75 lakhs

Long term Capital gain: 36 lakhs

Adjustment from earlier year carry forward losses: 12 lakh.

Now what would be my sales consideration in above example for claiming 54F benefits. 24 lakh already deposited in CGAS account before filing return.

Replies (2)

Quick Summary

This discussion clarifies how to calculate the sales consideration for claiming exemption under Section 54F, particularly when you have brought-forward long-term capital losses. It explains that for the purpose of the Section 54F calculation, the full sale consideration and the gross capital gain before setting off previous losses are used, not the net gain after loss adjustment. The exemption amount is then determined by the proportion of the sale consideration invested in a new property.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212282 Points Posted on 11 October 2025

For the purpose of claiming Section 54F exemption, the sales consideration to be considered is the total net sale consideration of the asset, not the net gain after setting off any earlier year long-term capital losses.

The denominator for exemption under Section 54F is always the sale consideration (₹75 lakhs), not the capital gain after loss adjustment.
The exemption calculation is:
$54F Exemption = Capital Gains \times Net Sale Consideration Amount Invested in New House$
The adjustment of earlier year losses (such as ₹12 lakh) affects taxable capital gain in the final return, but for the Section 54F formula and investment requirement, the full sale consideration (₹75 lakh) and the gross capital gain before set-off (₹36 lakh) are what matter.