Own a House? Still Claim LTCG Exemption on New Property! Know the Rules

• Long Term Capital Gains (LTCG) exemption for new property purchases is available under Sections 54 and 54F of the Income Tax Act.
• Section 54F applies when selling non-residential assets (like mutual funds) to buy a residential property; you must own only one residential house on the sale date of the non-residential asset.
• To claim Section 54F, invest net sale proceeds from mutual funds in one residential home in India (1 year before/2 years after sale, or constructed within 3 years).
• Section 54 allows LTCG exemption when selling an existing residential property to buy another residential property.
• For mutual funds, use the FIFO method to identify long-term units; ensure redemption within one year of property purchase if the house is already bought.

Why It Matters: Navigating LTCG exemptions for new property purchases requires understanding Sections 54 and 54F conditions.