Save Tax On Mutual Funds & Property Sale With These Smart Moves

2025-09-23 01:09:52

(MENAFN- AsiaNet News)

The timeline for buying a new home is either 1 year before or within 2 years from the date of sale. If constructing, it must be completed within 3 years.

Selling assets like mutual funds or property attracts a long-term capital gains (LTCG) tax. But, you can avoid it with proper planning using Sections 54 and 54F of the Income Tax Act.

Sell non-residential assets like gold or mutual funds and buy a new house to get an LTCG tax exemption. The key rule: you must own only one house on the date of the sale.

Sell a house and use the gains to buy a new one for a tax exemption under Section 54. There's no limit on how many houses you own. Just follow the purchase/construction timelines.

In some cases, you can use both Sections 54 and 54F. Tax experts advise selling one of your houses before selling a mutual fund to meet the 'own only one house' rule.

You can avoid long-term capital gains tax if you sell assets and use the money to buy a house. Proper planning with Sections 54 & 54F can greatly reduce your tax burden.

MENAFN23092025007385015968ID1110097371

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.