Tax Hack: Groww IPO Wealth May Flow Into Bengaluru Real Estate, Says Anand K Rathi

With the Groww IPO estimated to create Rs 2,500 crore in employee wealth, a little-known tax exemption could push hundreds of crores into property purchases, especially near the company's office in Bengaluru East, believes Anand K Rathi.

According to Rathi, if even 20% of employees use Section 54F to avoid capital gains tax and start home shopping near Groww's office, real estate demand could surge, translating into over Rs 500 crore in fresh property investments.

And because the tax exemption applies to properties bought up to one year before the sale, realtors may see activity pick up immediately.

Rathi also flags key considerations for Groww employees:

• The exemption works only if the investment qualifies as long-term, meaning shares must be held 12 months after listing.

• If buying property to save tax, remember stock prices may fluctuate by the time of sale.

• Don’t overshoot your budget just because tax is being saved.

• Those already holding two houses may need to sell one and use Section 54 to adjust gains.

• Engage a competent financial advisor.