Income Tax Act rules, Jan. 3 -- For many Indians, selling an asset like gold, land, commercial property or stocks can attract a hefty tax, even if they have held it for years. However, the government lets you cut that liability significantly through Section 54F of the Income Tax Act, 1961.

Section 54F, a lesser known provision of the Income Tax Act, allows taxpayers to save tax on long-term capital gains (LTCG) by reinvesting the money to buy a property. In India, LTCG is charged at the rate of a uniform 12.5% for most asset classes on sales made on or after July 23, 2024.

There are several nuances as to how Section 54F works. Read on to find out.

Section 54F is a provision that exists to encourage home ownership.

"Section 54F of the ...