New Delhi, June 23 -- Selling shares, mutual funds, gold or property at a profit triggers capital gains tax liability as per the income tax law. Especially when the gains are substantial, the resulting tax bill can be equally big.

However, the tax law also provide certain exemptions that can help taxpayers reduce or even eliminate the tax burden, provided specific conditions are met. This is where Section 54F of Income Tax Act comes into the picture.

If you recently made a large profit from selling a long-term asset, Section 54F can help reduce or even eliminate your tax liability, provided you reinvest the sale proceeds in a residential property.

This provision offers capital gain exemption on sale of any asset, other than a residenti...