Commercial Property Sale? Claim LTCG Exemption Under Section 54F, Not 54!

• LTCG exemption on commercial property sale is not allowed under Section 54 of the Income Tax Act, which is specifically for residential properties.
• However, exemption can be claimed under Section 54F if the entire sale proceeds from the commercial property are invested in purchasing a residential property.
• Under Section 54F, the individual must not own more than one residential property on the date of selling the commercial asset (excluding the new purchase).
• Unlike Section 54 (invest capital gains), Section 54F requires investment of the *entire sale proceeds* from the commercial property.
• Exemption under Section 54F is capped at ₹10 crore if the new residential property's cost exceeds ₹10 crore.

Why It Matters: Commercial property LTCG can be exempted via Section 54F by investing entire proceeds in a residential property.