Capital Gains Tax Exemptions under section 54f
Hi - My name is Soumya. I had a purchased a plot in Goa in December 2006, and sold it in July 2024. As part of this transaction, I had long term capital gains. In April 2024, I booked an apartment that will I will get a possession in March 2027. The agreement value of this apartment is more than the capital gains of my transaction in the plot. Based on my understanding of section 54f, I can claim exemption on capital gains tax as I purchased the apartment within 1 year of my plot sale and will get possession within 3 years. However, at this point from ownership point, I am exclusive owner of another apartment and joint owner with my husband in a house. I see that to claim under section 54f, I should not own more than 1 residential property during the time of sale of plot. My question is if joint ownership considered in section 54f as ownership? If joint ownership is not considered, then I own only 1 residential property during time of sale. I did some research and found there are multiple cases in income tax tribunal on this (pls refer link https://www.taxathand.com/article/35625/India/2024/Deduction-for-reinvested-capital-gains-available-to-co-owner-of-more-than-one-house )
and my understanding is that joint ownership is not considered as ownership based on cases disposed. Can you please guide me if I can claim section 54f with my condition
Asked 22 days ago in Capital Gains Tax