I made LTCG on sale of equity shares in FY 2020-21. Can tax be saved by buying a house?
Divakar Vijayasarathy, Founder and Managing Partner, DVS Advisors LLP replies: Exemption from capital gains tax on sale of equity shares, being long term in nature, is available in Sec 54F if the sale proceeds are utilised for the purchase or construction of a new residential property. The quantum of the exemption is Investment in New Residential Property x Capital Gains / Net Consideration. The conditions are as follows: New residential property (First property) should be purch ..