Unlocking Tax Relief with Section 54F: Your Path to Homeownership

Capital Gains Exemption: Section 54F offers relief for long-term capital gains when investing in residential properties.

Eligibility Criteria: Individuals and HUFs can benefit, provided they don't own more than one house and reinvest within specific timeframes. Quantum of Exemption: Entire gains are exempt if the new property's cost equals or exceeds the sale consideration; otherwise, a proportionate exemption applies.

Consequences of Sale: Selling the new property within three years revokes the exemption, subjecting gains to taxation. Consequences of Purchase: Buying or constructing another house within specified timeframes triggers taxation of previously exempted gains.

Leveraging CGAS: The Capital Gains Account Scheme aids in availing exemptions by allowing deposits if property purchase is delayed. Be Timely: Failure to utilize CGAS funds within three years can lead to taxation, emphasizing the importance of timely action.