Tax Rules for Claiming 54 and 54F Exemptions on Under Construction Homes

When you sell a house or mutual funds and make a profit, you might have to pay taxes on that profit.

But there are special rules in India that let you avoid some of these taxes if you use the money to buy a new house.

These rules are called Sections 54 and 54F.

You can use both rules at the same time, but only if the money comes from different things, like selling a house and selling mutual funds.

If the new house is still being built, you have up to three years to finish it.

You also need to put any extra money into a special account called the Capital Gains Account Scheme.

There is a limit of 10 crore rupees on how much tax you can avoid in a year.

If the builder is late, that's okay as long as you did your part on time.

You need to keep all your papers to show you followed the rules.