A case of a Delhi-based woman has come to notice, where the Delhi Income Tax Appellate Tribunal (ITAT) granted the judgment in her favour to get exemption under Section 54F despite not having possession of her new property within the prescribed time. The person named Rajni was able to save Rs 93 lakh capital gain tax, which was earlier flagged by the tax department. Before diving deeper into the full case, it’s important to understand the section 54F under income tax act, 1961. Section 54F of the Income Tax Act, 1961 gives tax exemption on long-term capital gains (LTCG) when a person sells a capital asset (like land, shares, or gold) and invests the sale proceeds in a residential house.

What’s Rajni Case?

Rajni had sold a capital asset for Rs 1.25 crore. After adjusting indexed costs a

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