What is the Difference Between Section 54 and 54f?

Given below are some of the major differences between sections 54 and 54F: 

-Section 54 grants to calim a full exemption on the whole capital gains that have to be invested, whereas Section 54F provides a full exemption on the full sale proceeds that have to be invested. 

-In Section 54, if the capital is not invested, then the amount that is not invested will be taxable as long-term tax gains. whereas, on the other hand, in section 54F, if the sale receipts are not invested, then the exemption limit will be equal to the cost of the new house capital gains or sale receipts.

-Under Section 54F, you cannot hold more than one residential house at the time of the sale of the original property. 

-Under section 54, if you sell your new property within 3 years, then the capital gains from the sale of the pre-property will be considered as short-term capital gains, and your exemption will be reversed.  

-In section 54F, your exemptions will be reversed if you: 

Sell your new property within 3 years of construction or purchase. 

Buy another residential property within 2 years after the sale or construction of a residential house within 3 years under the sale of the original assets. 

Sales from the capital gains will be considered long-term capital gains and taxed accordingly. 

• In Section 54, if the capital gains are below 2 crores, you will get a lifetime exemption on investment in 2 properties.