Pay zero taxes on profits from shares and mutual funds using Section 54F
A taxpayer can claim a capital gain exemption under Section 54F of the Income Tax Act to reduce Capital Gains Tax on the sale of a Long Term Capital Asset. Section 54F exemption is available on the sale of a long-term capital asset except for house property if the taxpayer invests the sale consideration in the purchase or construction of a residential house property.
So, if you sell a capital asset like shares, bonds, jewellery, gold, etc. and reinvest the sale proceeds towards the purchase or construction of a house property, the returns earned on the sale of the capital asset would be allowed as an exemption from tax under Section 54F.
The maximum exemption amount is up to capital gains. The amount of Exemption under Section 54F will be as below:
Exemption amount = Cost of new asset x Capital Gains / Net Consideration
Recommended watch:
👉 Stock Market for Beginners: [ Ссылка ]
👉 Top Stocks - Detailed Industry Analysis: [ Ссылка ]
👉 Groww Originals: [ Ссылка ]
👉 Groww Masterclass: [ Ссылка ]
👉 Mutual Funds for Beginners: [ Ссылка ]
👉 Personal Finance for Beginners: [ Ссылка ]
👉 Groww reads - Book Review: [ Ссылка ]
👉 Stocks Fundamental Analysis Series: [ Ссылка ]
👉 IPO Review: [ Ссылка ]
👉 Viral Reacts: [ Ссылка ]
👉 Thrive by Groww: [ Ссылка ]
To watch the best videos on investing,
Subscribe to Groww Channel 👉 [ Ссылка ] and hit the 🔔 to watch our videos first.
We also have a Kannada, Tamil, Telugu, Malayalam, and a Mutual fund channel
🔔 Groww Kannada - [ Ссылка ]
🔔 Groww Tamil - [ Ссылка ]
🔔 Groww Telugu - [ Ссылка ]
🔔 Groww Malayalam [ Ссылка ]
🔔 Groww Mutual Fund - [ Ссылка ]
🔔 Groww Gujarati - [ Ссылка ]
If you have any concerns with respect to Groww, please feel free to write to us at support@groww.in or you can call us at +91-9108800604.
Follow us on:
Facebook: [ Ссылка ]
Twitter: [ Ссылка ]
Instagram: [ Ссылка ]
LinkedIn: [ Ссылка ]
Telegram: [ Ссылка ]
#Groww
Disclaimer: These are not any recommendations for any funds or stocks and are meant only for educational purposes.
Research Analyst disclaimer: [ Ссылка ]
Name of the Research Analyst - Mr. Himanshu Sinha
Name of the narrator - CA Aleena Rais
Report Date: 14 June 2022
