Section 54F - Capital Gain on sale of LTCA not to be charged in case of investment in residential house - Income Tax - Ready Reckoner - Income Tax

Section 54F - Capital Gain on sale of LTCA not to be charged in case of investment in residential house Assessee Individual/HUF Nature of Asset Long-term capital asset Asset to Transfer Any Capital Assets not being residential house property New assets to be purchased or constructed One residential house in India i.e. building land appurtenant there to Time limit Purchase :- Within 1 year before or 2 years after the date of transfer; and Construction :- To be completed within 3 years after the date of transfer. New assets should be situated in India [ Leena J. Shah Vs. ACIT 2005 (11) TMI 386 - ITAT Ahmedabad ] Capital Gain Deposit Scheme Available Quantum of Deduction Where part of the net sales consideration is invested, it will be exempt proportionately :- Capital Gain*Amount Invested/Net Sale Consideration Transfer Condition If such New Asset transferred within 3 Years from the date of purchase or construction, then Cost of Acquisition of New Asset to be reduced by capital gain exemption availed. Deduction is not available ( a ) the assessee,- ( i ) owns more than one residential house, other than the new asset, on the date of transfer of the original asset; or ( ii ) purchases any residential house, other than the new asset, within a period of one year after the date of transfer of the original asset; or ( iii ) constructs any residential house, other than the new asset, within a period of three years after the date of transfer of the original asset; and ( b ) the income from such residential house, other than the one residential house owned on the date of transfer of the original asset, is chargeable under the head Income from house property . where the cost of new asset exceeds ten crore rupees, the amount exceeding 10 crore rupees shall not be taken into account for the purposes of section 54F(1) . [ Proviso added as per FA, 2023 ]