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TAX EXEMPTION U/S 54

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PRANAV

BUSINESS

1 Points Posted on 03 June 2024

I had purchased a house in june 2023 for Rs 1 crore it was a flat booked and balance 20 percent payment is still payable as it is under construction and expected delivery is novemeber 2024. . i have sold 2 small residential propertiesin FY 24 against this flat where the capital gain after indexation is 4 lakh In august 2024 i intend to sell a commercial shop of 50 lakh which has a capital gain of 30 lakh other then these i own my residential flat currently staying and 3 small residiential flats . will i be allowed tax exemption U/S 54 in FY 24 & FY 25

Replies (2)

Quick Summary

This discussion explores the eligibility for tax exemption under Section 54 of the Income Tax Act. It clarifies that exemption for Long Term Capital Gains (LTCG) on residential properties can be claimed under Section 54, provided the sale and purchase are consecutive. However, exemption for LTCG on commercial property is not available under Section 54F. The user is seeking clarification on their specific situation involving a new under-construction flat and the sale of residential and commercial properties.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212529 Points Posted on 03 June 2024

You are not eligible to claim exemption of LTCG of Commercial property u/s. 54F of IT act. Any LTCG over house properties can be claimed u/s. 54 of IT act.