Gold Sale? Cut Capital Gains Tax with Section 54F for Home Buyers

• Section 54F of the Income Tax Act allows individuals and HUFs to save on long-term capital gains tax when selling assets like gold, stocks, or commercial land.
• To claim the deduction, the proceeds from selling these assets must be reinvested into buying or constructing a residential house.
• The new house must be purchased within one year before or two years after the sale, or constructed within three years from the sale date.
• This exemption is designed to encourage investment in residential property and reduce the tax burden on capital gains.
• The benefit applies only to one residential house located in India; properties outside India do not qualify.

Why It Matters: Reinvesting gold sale gains into a residential house via Section 54F can significantly reduce your capital gains tax.