# Setting off capital gain tax using ELSS or Health insurance premium **URL:** https://tradingqna.com/t/setting-off-capital-gain-tax-using-elss-or-health-insurance-premium/162221 **Category:** Taxation **Created:** [March 12, 2024, 10:00am UTC](https://tradingqna.com/t/setting-off-capital-gain-tax-using-elss-or-health-insurance-premium/162221 "2024-03-12T10:00:37Z") **Posts on this page:** 5 **Page:** 1
### Author: ![rahul8](https://tradingqna.com/letter_avatar_proxy/v4/letter/r/90db22/32.png) [@rahul8](https://tradingqna.com/u/rahul8) #### Post date: [March 12, 2024, 10:00am UTC](https://tradingqna.com/t/setting-off-capital-gain-tax-using-elss-or-health-insurance-premium/162221/1 "2024-03-12T10:00:37Z")
Hi, Let’s say I’ve Short term realized profit of 80,000 Rs. Short-term capital gains are taxable @15%. 15% of 80,000 is 12,000. If I invest 12,000 in an ELSS Mutual Fund or pay Health insurance premium, will I will pay tax now? Can 80C be set off against capital gains tax from equity? ---
### Author: ![Quicko](https://tradingqna.com/user_avatar/tradingqna.com/quicko/32/19226_2.png) [@Quicko](https://tradingqna.com/u/Quicko) #### Post date: [March 12, 2024, 10:47am UTC](https://tradingqna.com/t/setting-off-capital-gain-tax-using-elss-or-health-insurance-premium/162221/2 "2024-03-12T10:47:15Z")
Hi @rahul8, ELSS investments do qualify for deduction u/s 80C, however, Chapter VI A deductions like 80C, 80D etc. are not eligible for special rate incomes such as short-term capital gains u/s 111A and long-term capital gains u/s 112A. ---
### Author: ![rahul8](https://tradingqna.com/letter_avatar_proxy/v4/letter/r/90db22/32.png) [@rahul8](https://tradingqna.com/u/rahul8) #### Post date: [March 15, 2024, 8:17am UTC](https://tradingqna.com/t/setting-off-capital-gain-tax-using-elss-or-health-insurance-premium/162221/3 "2024-03-15T08:17:19Z")
Is their any way to save taxes on long-term capital gains? I asked my CA, he said if we invest in residential real estate we can save taxes on long-term capital gains on Stocks and MF. Is this correct info? If yes, then please explain briefly how it works. Thanks! ---
### Author: ![Quicko](https://tradingqna.com/user_avatar/tradingqna.com/quicko/32/19226_2.png) [@Quicko](https://tradingqna.com/u/Quicko) #### Post date: [March 15, 2024, 9:22am UTC](https://tradingqna.com/t/setting-off-capital-gain-tax-using-elss-or-health-insurance-premium/162221/4 "2024-03-15T09:22:07Z")
Hey @rahul8, Yes, you can claim an exemption under section 54F. This section allows you to claim a tax exemption when you sell stocks and reinvest the proceeds in buying or constructing a new residential property. Here’s a detailed read on the same: > **[Capital Gain Exemption under the Income Tax Act - Learn by Quicko](https://learn.quicko.com/section-54f-of-income-tax-act-sale-of-ltca)** > > Capital Gain Exemption is allowed to a taxpayer on the sale of a capital asset. These exemptions reduces total tax liability of a taxpayer. ---
### Author: ![cvs](https://tradingqna.com/user_avatar/tradingqna.com/cvs/32/92503_2.png) [@cvs](https://tradingqna.com/u/cvs) #### Post date: [March 15, 2024, 9:55am UTC](https://tradingqna.com/t/setting-off-capital-gain-tax-using-elss-or-health-insurance-premium/162221/5 "2024-03-15T09:55:12Z")
Hi @Quicko **Can you kindly re-confirm** **the following restriction that is mentioned in the above article?** > The taxpayer also should not purchase any other house within 2 years or construct within 3 years after the date of transfer (apart from the new asset for exemption). ![image](https://tradingqna.com/uploads/default/original/3X/c/4/c47d07a51a5fa78c2f5681f4e5d4bb96be2bede5.png) However, upon careful review of the Section 54F of the Income Tax Act, it appears that the actual condition is that one must NOT purchase/construct another residential house for 2/3 years, the income from which is chargeable under the head “Income from house property”. i.e. purchasing/constructing another house within the stipulated period on its own is NOT a restriction, **as long as one does NOT receive any income from it**. Refer highlighted sub-sections, clauses, and explanation - ![image](https://tradingqna.com/uploads/default/original/3X/8/5/85ae72cb4df9857101d3999128fba875d3472ac0.png) **Source** : [Section 54F](https://incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Act&cname=CMSID&cval=102520000000139815&searchFilter=%5B%7B%22CrawledPropertyKey%22:1,%22Value%22:%22Act%22,%22SearchOperand%22:2%7D,%7B%22CrawledPropertyKey%22:0,%22Value%22:%22Income-tax%20Act,%201961%22,%22SearchOperand%22:2%7D,%7B%22CrawledPropertyKey%22:29,%22Value%22:%222024%22,%22SearchOperand%22:2%7D%5D&k=&IsDlg=0) of the [Income Tax Act](https://incometaxindia.gov.in/pages/acts/income-tax-act.aspx). **Could you please review and confirm or clarify the above?** * * * BTW, the same clarification is also being discussed recently in [this thread](https://tradingqna.com/t/possible-discrepancy-in-zerodha-varsity-article-on-section-54f/162105), and is still awaiting clariication from Zerodha Varsity folks.