LTCG tax saving on Sale of Mutual Fund

Tax planning 184 views 6 replies

Anoop Agarwal

Manager

55 Points Joined December 2020

Dear Members

I am salaried having one house registered on my name and one commercial ancestral property inherited after demise of my father.

I invested 10.0 lac in Technology mutual fund (Sectoral equity fund) fund in 2021 i.e. 2 years back and currently having very good profit of almost 10.0 lac. Considering sectoral fund, I want to redeem the money in FY 24-25. How can I save tax on LTCG?

I started construction of one residential house in Dec 2023 where I have invested almost 20 lac from my savings and cosntruction will complete in 2 months (Oct 2024), can these construction cost amount be adjusted against capital gain from Sectoral mutual fund?

Kindly advice

Thanking you in advance

Replies (6)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197267 Points Joined July 2016

Not eligible to claim exemption u/s. 54F IT act.

Pranav Aggarwal

525 Points Joined April 2017

Dhiraj why 54F is not allowance in this case if assesse constructe new residential house with sale of asset other than property

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197267 Points Joined July 2016

Amount already invested in house property before sale of the asset. Section 54F is not eligible for investment before the arise of capital gain.

Anoop Agarwal

Manager

55 Points Joined December 2020

Thank you Dhiraj Sir as always for your quick response..any possibility to use this in furniture for this house Or part payment which is due in next 2-3 month around 10-12 lakh

Anoop Agarwal

Manager

55 Points Joined December 2020

Can i use the captial gain for reminder of payments to be made from now onwards or in furnishing of newly constructed house

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

197267 Points Joined July 2016

As per rule, if you are getting rent income from your commercial property, then you are not entitled to claim any exemption u/s. 54F IT act, as you have more than one property at the time of sell of the shares/MF units.