Long Term Capital Gains after purchase of property - Section 54F

Hello

I purchased a property (flat) for Rs 1.5CR on 01-Oct-2023 (registration date). I already have another property that was purchased in 2020. I have long term capital gains arising from sale of foreign equity (RSU) for Rs 10 lakhs on 31-Dec-2023 and Rs 15 lakhs on 30-Jun-2024.

My understanding based on Section 54F is that I can claim exemption from tax on these long term capital gains since the property is purchased one year ago. Can someone please confirm understanding? Also apart from filing the Income Tax return, do I need to fill any other form or take any other step to claim this exemption?

Really appreciate if someone can take the time and effort to please reply.

Thanks and Regards

-AJ

 

Replies (3)
Quick Summary
This discussion explores claiming exemption under Section 54F for long-term capital gains arising from the sale of foreign equity (RSUs). The user purchased a property in October 2023 and has capital gains from RSU sales in December 2023 and June 2024. The consensus is that exemption can be claimed by reporting it in the Income Tax Return (ITR) within the capital gains schedule, provided the property purchase meets the Section 54F criteria. The response also clarifies that the RSU gains from June 2024 will fall into the next financial year and suggests considering Section 54 bonds as an alternative if needed.

Yes, you can claim.

There’s no additional form, just mention in the relevant part of ITR about the exemption claimed u/s 54F after adding the capital gain income in the capital gain schedule.

Its not purchase of one property and selling of amother one.
Its not selling of equity and purchasing a property.

To avail exemption on capital gain, you need to buy a residential property within 1 or 2 yrs but construction of the property you will have  3yrs time. However, you have sufficient residential assets. You can go to buy bonds upto Rs.50,00,000 is a limit and time duration is 6 months. You can avail capital gain exemption u/s 54. 

As you mentioned RSU income received Rs.15 lakhs for next financial year. It will not be accounted into current financial year. 

So, you have capital gain income only for Rs.10 lakhs. As you mentioned, you recently purchase whether it was purchased by home loan not. You can avail Pre-Interest and principle and emi interest. 

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