Capital Gain

[Ethirajan Parthasarathy]

A resident of India, holds shares in a foreign company. He wishes to sell the such shares and re-invest the sale proceeds in a residential property (his first property) in India and claim exemption u/s 54F.

My opinion is, it is possible. Can experts’ comment on my view.

AI Summary

Indian Resident Can Use Section 54F to Reinvest Foreign Share Sale Proceeds in Residential Property for Tax Exemption A resident of India inquires about selling shares in a foreign company and reinvesting the proceeds in a residential property in India to claim exemption under Section 54F of the Income Tax Act. An expert confirms that shares in a foreign company qualify as a long-term capital asset under Section 54F, provided the holding period criteria are met. Therefore, the individual can invest the sale proceeds in a residential property and potentially shield the capital gain from tax under this section.