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

Capital gain exemption: Reinvestment of proceeds from sale of foreign shares into first residential house may qualify under section 54F.
Shares of a foreign company qualify as a long term capital asset for purposes of the reinvestment exemption where the holding period criteria for long term status are met; accordingly, reinvestment of the sale proceeds in a residential property (the assessee's first house) in India can enable claiming the capital gain exemption, subject to the prescribed eligibility and holding period requirements for the exemption.