Answer

1. F

   Facts

   Sell a residential property and reinvest in another residential property, the capital gains are fully or partly exempt. The most valuable capital gains exemption in India. Saves ₹5L–₹30L in tax for property sellers. Timing and documentation are critical.

2. P

   Provisions and law

   • Sec 82 (old 54(1))
   • Sec 82 (old 54(2))
   • Sec 82 (old 54(3))
   • Sec 86 (old 54F)
3. A

   Analysis

   Three time windows to reinvest: (1) Buy new property 1 year BEFORE the old property sale, the earlier purchase already counts. (2) Buy new property within 2 years AFTER sale. (3) Construct a new property within 3 years after sale. ALL three qualify. CGAS, the safety net: If you have sold the property but haven't yet bought a new one before your ITR filing deadline (July 31 or October 31), deposit the LTCG amount in Capital Gains Account Scheme at any nationalised bank (SBI, PNB, Bank of Baroda etc.) in a designated CGAS account. You can then withdraw from CGAS to fund the new property purchase within the 2/3 year window. CGAS deposit must happen BEFORE filing ITR to claim the exemption in the sale year. Partial exemption: If only part of LTCG is reinvested: exemption = (new property cost / LTCG) × LTCG.

4. C

   Conclusion

   1. 1Confirm property is long-term (held 24+ months from purchase to sale)
   2. 2Compute LTCG: Sale price (or stamp duty value, whichever higher) minus indexed/actual cost
   3. 3Decide: reinvest in new residential property OR NHAI/REC bonds (Sec 85, Income-tax Act 2025, old Sec 54EC)
   4. 4If buying new property: timeline, purchase within 2 years or construction within 3 years from sale date
   5. 5Check if any property purchased in the year BEFORE the sale, that also qualifies for Sec 82 (old Sec 54; 1-year lookback)
   6. 6If new property not yet purchased and ITR deadline approaching: open CGAS account at nationalised bank, deposit LTCG

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.