WorkIndex/Section 54F Capital Gains Exemption
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Section 54F Capital Gains Exemption
Sell gold, shares or plot and reinvest in a house

Section 54F can exempt long-term capital gains on assets other than residential house property when net consideration is invested in a residential house subject to conditions.

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Last fact-checked: 2026-05-30
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Fact-check notes

Last fact-checked: 2026-05-30

Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. Tax Year 2026-27 and new-form references should be verified against official utilities before filing.

Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.

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What this covers

Section 54F can exempt long-term capital gains on assets other than residential house property when net consideration is invested in a residential house subject to conditions.

  • Full exemption generally requires investment of full net consideration, not just the gain.
  • One-house ownership condition and new-house lock-in are central.
  • CGAS may be needed if investment is incomplete before ITR due date.
  • 54F and 54EC planning should be modelled before sale proceeds are used.
Use cases

Who this is for

  • Gold seller buying a house.
  • Investor selling shares to buy residential property.
  • Owner selling commercial plot.
  • CA planning capital gains before asset sale.
Records

Documents and data to verify

  • Sale deed/contract notes and cost proof.
  • House purchase/construction documents.
  • CGAS deposit proof if applicable.
  • Ownership declaration for other houses.
Care points

Common mistakes to avoid

  • Investing only gain when full proceeds are needed.
  • Missing CGAS deadline.
  • Already owning too many houses.
  • Selling new house within lock-in.
Action

How to proceed

  • Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
  • Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
  • Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
  • Download acknowledgements, challans, workings and evidence after filing or submission.
Questions people ask

FAQs

Can WorkIndex help with this?

Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.

Is this page final legal advice?

No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.

What should I mention while posting?

Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.

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