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Exemption u/s 54f is allowed only on agrement value of flat or on entire cost?

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KALPESH JOSHI

215 Points Posted on 06 November 2021

Hello, I want to claim exemption u/s 54F by investing in one residential property, my agreement value is around 79lac, Will I get exemption only on agreement value or on an entire purchase cost of an under-construction of a flat which includes stamp duty and registration charges @ 5lac, GST payable on under construction on a flat @ 4lac and one-year advance maintenance charges @ 1lac rupees. + 79lac which is agreement value cost.

Please reply and thanks

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Quick Summary

This discussion clarifies whether the Section 54F capital gains tax exemption is calculated based solely on a flat's agreement value or its entire purchase cost. The consensus is that the exemption generally covers the complete cost of acquiring the new asset, including expenses like stamp duty, registration fees, and GST, but typically excludes advance maintenance charges.