LTCG U/S 54F. Sale of property plus sale of share.

• Flat (Residential House): Governed by Section 54; exemption is based on reinvesting the capital gains.

• Shares: Governed by Section 54F; exemption is based on reinvesting the total net sale consideration.

• Action: Ensure you do not own more than one residential house (excluding the new one) at the time of the share sale to qualify for Section 54F. If the investment is not completed by your tax filing deadline, deposit the funds into a Capital Gains Account Scheme (CGAS).

Thank you so much for your response. Further to above.

1)Flat - first name my wife , second name myself

2)Shares - Demat account- My name first and my wife's name second. 

3) My question  - While purchasing new house whose name should be first. 

4) I have a Flat in my name first and Wife second - where we are staying.at present.

5)  Whether CGAS can be taken in joint name and in income tax return whether income from sale of flat and shares can be split. 

Tenure must be complied.

Within the specified date. Sale of shares and re-investing in house property.

Yes, both Section 54 and Section 54F can apply to separate sources of LTCG when you reinvest in one residential house. The expert confirmation is correct. Here are the CONDITIONS YOU MUST VERIFY before claiming both:

FOR SECTION 54 (residential flat to new house):

1. The asset sold must be a long-term residential house property (held over 24 months). Your flat qualifies.
2. Reinvest the CAPITAL GAINS amount (not full sale proceeds) in the new residential house, within 1 year before or 2 years after the sale date.
3. The new house must be purchased in India.
4. LTCG exemption under Section 54 is CAPPED at Rs 10 crore from Assessment Year 2024-25 onwards. Your gains from the flat appear to be under Rs 10 crore, so this cap should not affect you.

FOR SECTION 54F (shares to new house):

1. You must reinvest the ENTIRE NET SALE CONSIDERATION of Rs 75L (not just the capital gains portion) in the new house to claim full exemption. If you reinvest only a proportion, exemption is proportional.
2. On the date of transfer of shares, you must NOT own more than ONE residential house (other than the new house being purchased).
3. If you already own two or more residential houses on the date of sale of shares, Section 54F is NOT available.
4. Same time limits: 1 year before or 2 years after sale, or 3 years for construction.
5. Same Rs 10 crore LTCG cap applies for 54F as well.

COMBINED REINVESTMENT: Since you are buying one house at Rs 325L to cover both claims, ensure your accounting clearly segregates: the 54 reinvestment from flat proceeds and the 54F reinvestment from share proceeds. Keep separate calculations for each claim in Schedule CG of your ITR.

For a detailed guide on Section 54 and 54F conditions and examples: https://www.taxgarden.in/blog/capital-gains-exemption-section-54-54f-54ec

Tax Garden can prepare your ITR with both capital gains exemption schedules correctly computed: https://www.taxgarden.in/services/itr-filing