Section 54F

[umeshkumar jhawar]

The assessee has purchased flat worth 30.00 crore in FY 2022-23. Out of which payment of 2 crore made during FY 22-23 itself and 13 crore before filing of return for AY 2023-24 total benefit taken 15 crore for AY 2023-24 u/s 54 F. Now during current year he had made payment of 15 crore. Whether he can take benefit of Rs. 10.00 crore for current year as per proviso inserted by Finance Act 2023 against LTCG.

 

[Padmanathan KV]

I am assuming you have capital gains arising in both FY 2022-23 (AY 23-24) and FY 2023-24 (AY 24-25). Then, yes.
 

AI Summary

Capital gains reinvestment relief under Section 54F: remaining exemption can be claimed where gains arise in both years.
An assessee partially met the cost of a residential flat across two financial years and claimed reinvestment exemption under Section 54F for the earlier year. The question was whether the remaining reinvestment benefit can be claimed in the subsequent year given the proviso added by the Finance Act, 2023. The adviser assumed long term capital gains arise in both years and concluded that, on that assumption, the remaining Section 54F benefit may be claimed in the later year, tying availability to the existence of gains in each year.