When you sell a long-term capital asset like land, gold, or shares, you are typically liable to pay capital gains tax on the profit earned. But what if you could legally save that tax by simply reinvesting the money into a residential house? That’s exactly what Section 54F of the Income Tax Act allows. It’s a highly beneficial exemption provision for individual taxpayers and Hindu Undivided Families (HUFs) who wish to convert their gains into a home rather than paying taxes on it.
This blog explains everything you need to know about Section 54F, who can claim it, what conditions must be met, and how to go about it, without overwhelming you with jargon. Whether you’re a property investor, salaried professional, or NRI, this guide will help you understand how to make the most of this tax-saving opportunity.
