54F Exemption in consecutive 2 years towards installments paid for new house

[Rajat Gupta]

Can we claim 54 F exemption across 2 years towards installments paid for one new residential house? will it be allowed? How to show in ITR ,total installments paid in one year or total cost of new residential house

AI Summary

How to Claim Section 54F Exemption: Timing, Investment Rules, Installments, Capital Gains Account and ITR Reporting Claiming Section 54F depends on meeting statutory timing and investment conditions: the new house must be purchased within the prescribed pre/post-transfer period or constructed within the statutory construction period, and the capital gain must be actually invested in the house. Installments paid across two financial years can be aggregated for the purpose of the investment test only if they were paid within the allowable period and form part of the actual cost of the new house; amounts not yet invested may need to be parked in a specified capital gains account to preserve exemption. In the ITR, report the capital gain, the amount invested in the new house (total cost paid and any amounts deposited in the capital gains account), and attach/retain supporting documents and computation. Consult a tax professional for application to the specific facts.