54F reinvesting LTCG in new residential property

Taxation
1

Hello

I have realized long term gains from sale of listed stocks / MF

and

also have:
-Short term losses from sale of listed stocks/MF

-Business loss from F& O

-Long term loss from sale of plot

-Sale of some other listed stock/ US stock

If so,

Is it allowed to invest only the realized long capital gains (without setoff with the various booked losses) in a residential property under section 54F and carry forward all the losses (listed as above) to the subsequent years.

I have one residential owned by me.

2

You will have to set off losses first.
Only the balance amount can be invested for 54F exemption.

3

How does 54F works.

Let say I sold stock (LTCG ) now I want to invest that amount to buy residential property.

Do I have to buy it before filing ITR ?

4

Follow-on Question

If we sold some MF/Stock, can that be used for part-payment of existing Home Loan or 54F dictates to only buy new property

5

Screenshot_20250914_125811_Chrome|230x500

Screenshot_20250914_124640_Chrome
Screenshot_20250914_124640_Chrome1080×2340 276 KB

6

another follow on question - for successfully claiming the 54F exemption, does the capital gains amount have to be deposited in some specific 54F account?

I remember reading something like that years ago and would appreciate a clarification. TIA.

7

IIRC, investing into a CGAS account is necessary ONLY if
one does not manage to re-invest the proceeds that resulted in LTCG
into purchasing/constructing a residential property before filing one’s ITR.

1 Like
8

thanks @cvs

@Quicko thoughts on the 3 questions above?

1 Like