Income Tax
Section 54F Exemption
LTCG exemption when net sale proceeds from any long-term capital asset (other than a house) are reinvested in a residential house.
Full Definition
Section 54F differs from Section 54 in that it applies when the capital asset sold is anything other than a residential house (e.g., stocks, land, commercial property, gold). The entire net sale consideration (not just capital gains) must be invested in one residential house in India to claim full exemption. Proportionate exemption is available if only part of the proceeds are reinvested. Conditions: the taxpayer must not own more than one other residential house on the date of transfer (excluding the new purchase).
Related terms
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).