Sell Shares, Buy Property, Pay No Tax: Shreya Kapoor's Smart Tax Tip

Finance influencer Shreya Kapoor shares a powerful tax-saving strategy for those who've earned profits from selling shares or mutual funds this financial year. Her advice? Use Section 54F of the Income Tax Act to reinvest and save big on taxes.

What Is Section 54F?

Section 54F allows you to avoid paying long-term capital gains (LTCG) tax if you reinvest the money from selling capital assets, like stocks, mutual funds, or gold, into a residential property.

How to Qualify:

To benefit from this exemption, you must meet these conditions:

• You must not own more than one house at the time of selling your shares or mutual funds.
• The new house must be purchased within 1 year before or 2 years after the sale.
• If constructing, the house must be completed within 3 years.
• You must not sell the new house within 3 years, or the exemption will be reversed.

Updated Limit from April 2023:

From 1st April 2023, the maximum exemption under Section 54F is ₹10 crore. This means even large profits can be shielded from tax, if reinvested properly.

Why It Matters:

Many investors end up paying high taxes simply because they aren't aware of this provision. Shreya Kapoor urges you to share this tip with friends who've made solid gains in the market this year. It's a smart way to build wealth and reduce tax legally.

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