Section 54F → Section 72
Exemption on sale of any asset other than a residential house
Quick Answer
Section 54F of the Income Tax Act, 1961 (Exemption on sale of any asset other than a residential house) corresponds to Section 72 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 54F
Under the Income Tax Act, 1961, Section 54F governs exemption on sale of any asset other than a residential house. Exemption if net sale consideration of any long-term asset (shares, gold) is invested in a residential house.
From 1st April 2026, the same subject sits at Section 72 of the Income-tax Act, 2025 — retained and renumbered as Section 72 of the Income-tax Act, 2025. Retained with the new Rs. 10 Crore maximum cap limit.
For Section 54F, the practical impact is rated High. Widely used for converting stock market wealth into real estate.
Sec 54F
Provision Summary
Exemption if net sale consideration of any long-term asset (shares, gold) is invested in a residential house.
Sec 72
Provision Summary
Retained with the new Rs. 10 Crore maximum cap limit.
Key Changes & Highlights
- Proportionate exemption logic hardcoded into the portal to prevent manual calculation errors.
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Frequently Asked Questions
What is Section 54F of the Income Tax Act, 1961 about?
Section 54F of the Income Tax Act, 1961 covers exemption on sale of any asset other than a residential house. Exemption if net sale consideration of any long-term asset (shares, gold) is invested in a residential house.
Which section replaces Section 54F in the Income-tax Act, 2025?
Section 54F of the Income Tax Act, 1961 maps to Section 72 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained with the new Rs. 10 Crore maximum cap limit.
What is the impact of the change to Section 54F under the new tax code?
The transition impact for Section 54F is rated High. Widely used for converting stock market wealth into real estate.
What should I watch out for when Section 54F moves to the 2025 code?
Proportionate exemption logic hardcoded into the portal to prevent manual calculation errors. These points are specific to Section 54F (Exemption on sale of any asset other than a residential house).
Disclaimer: This mapping of Section 54F (Exemption on sale of any asset other than a residential house) to Section 72 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 54F is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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