| Thursday, 17 November 2022 |
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Good morning [%first_name |Dear Reader%],
A few weeks ago, one of our readers asked me a question:
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That opened up a bit of a rabbit-hole for me, and we tackled Section 54 and Section 54EC of the Income Tax Act first. If you’d missed them, check out those editions, because both have very useful tax-saving provisions if you are ever in a position to sell residential property.
But they’re also the building blocks for the answer to Sandhya Godavarthy’s question.
Section 54F.
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A tax-saver with many strings attached
Until March 2018, long-term capital gains (LTCG) on listed equity shares and equity mutual funds were exempt from tax.
So, if you sold these shares or mutual fund units after holding them for over 12 months, the gains were considered long-term and no tax was levied on them.
