Income Tax 2 November 2026
Tax Rules for NRIs Selling Mutual Funds to Buy Indian Home
Indian NRIs who sell mutual fund units to fund a home purchase can claim a capital gains tax exemption under Section 86 of the Income‑tax Act, 2025 (formerly Section 54F). The exemption applies if the proceeds are reinvested in a residential property within the specified time frame and certain conditions such as holding the asset for at least three years are met.
Tax exemption for NRIs\n\nNRIs selling mutual fund holdings to purchase a home in India may qualify for a capital gains exemption under the revamped Section 86 (previously 54F). The benefit hinges on reinvestment of the sale proceeds into a residential property within the prescribed period.\n\n- Reinvest proceeds in a new residential unit within two years of sale.\n- Hold the newly acquired property for a minimum of three years to retain exemption.\n- The exemption is available only under the new tax regime introduced in 2025.\n\nRead the full Mint article
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