Does Section 54F tax exemption apply if LTCG is used to buy property from spouse? Here's what the ITAT ruling says
The Income Tax Appellate Tribunal (ITAT) ruled in favor of a woman who claimed a ₹6.92 crore exemption under Section 54F after purchasing property from her husband, rejecting allegations of tax avoidance. The ITAT found no evidence to support the Income Tax Department's claim that the transaction was a 'colourable device' for evading taxes. This ruling reinforces that genuine transactions between spouses should not be viewed as tax evasion, allowing the exemption to stand.