LTCG on Equity Shares FY 2024-25

You are eligible to get exemption u/s. 54/F IT act, subject to some conditions..

Read::  https://cleartax.in/s/invest-multiple-capital-gains-on-buying-new-house-property

Since your Long-Term Capital Gain (LTCG) is ₹24-25 lakh in FY 2024-25, you can invest in property in the next financial year (FY 2025-26) to claim exemption under Section 54 or Section 54F of the Income Tax Act.

Key Points:

1. Investment in Property (Section 54 / 54F):

   • If you sell a residential property and invest the LTCG in another residential property within 2 years (for resale purchase) or 3 years (for construction), you can claim exemption under Section 54.

   • If you sell any asset other than a residential property and invest the entire sale proceeds in a residential property, you can claim exemption under Section 54F.

2. Capital Gains Account Scheme (CGAS):

   • Since your ITR filing deadline is July 31, 2025, but you plan to invest in the next FY, deposit the unutilized LTCG in a Capital Gains Account Scheme (CGAS) before July 31, 2025, to remain eligible for tax exemption.

   • If you do not invest within the specified time limit, the amount will be taxed in the year it is not invested.

3. Holding Period:

   • The newly purchased property must be held for at least 3 years, or the exemption will be revoked, and the gains will be taxed as short-term capital gains.