Tax planning
Sale of residential property with Sec 82 (old 54) exemption
What this means, checked by a CA
If you sell a house you held over two years and put the gain into another house in India, the gain is exempt up to the amount you reinvest (capped at ₹10 crore). We compute the gain, test the timelines, open or guide the Capital Gains Account if the new house is not ready, and report the exemption in your return.
₹4,999
Per event, + 18% GST
- Delivered in 3 working days after sale deed, purchase deed and payment proofs
- Due: New house: bought 1 year before or 2 years after the sale, or built within 3 years. Unused gain: deposit in Capital Gains Account Scheme before the return due date (AY 2026-27: 31 July 2026 for ITR-2). Advance tax in the quarter of sale.
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 8 items
Sale deed and agreement to sell
Sale value, dates, payment mode
Stamp duty value on agreement and registration
Sec 78 (old 50C) 110% test
Original purchase deed and payments
Cost and acquisition year
Improvement bills with datesOptional
Cost of improvement, indexed if chosen
Brokerage and transfer expense receiptsOptional
Deductible from sale value
New house agreement, deed or builder receipts
Proves investment and dates
CGAS passbook or deposit receiptOptional
Proof filed with return
Inheritance or gift papersOptional
Previous owner's cost and date
DiscussionWhat we discuss · 6 items
When and how did you acquire the house (bought, inherited, gifted, under-construction booking)?
Holding over 24 months, cost and indexation option
Are you resident or NRI, and was the house bought before 23 July 2024?
Only residents get the 20% indexed option
Is the new house already bought, under construction, or still being searched?
Decides CGAS deposit before the due date
Is the gain ₹2 crore or less, and have you used the two-house option before?
Two houses allowed once in life
Is the new house in India and in your own name (or jointly)?
Foreign house does not qualify
Do you plan to sell the new house within 3 years?
Exemption is clawed back
FormsForms we file · 7 items
Compute full value of consideration
Higher of agreed price and stamp duty value where stamp duty value exceeds 110% of the agreed price
Where: Internal working with state stamp valuation. Due: In the quarter of sale
Compute long-term gain both ways for a resident with pre-23 July 2024 property
A: (sale value minus expenses minus cost minus improvement) x 12.5%. B: (sale value minus expenses minus indexed cost minus indexed improvement) x 20%. Pay the lower. CII 2025-26 = 376
Where: Internal working. Due: In the quarter of sale
Pay advance tax on the gain not expected to be exempt
Where: https://www.incometax.gov.in e-Pay Tax. Due: Instalment of the quarter of sale
Compute exemption
Exemption = lowest of (long-term gain), (cost of new house(s) plus CGAS deposit), and the ₹10 crore cap
Where: Internal working. Due: Before filing
Deposit unused gain in Capital Gains Account (Scheme 1988) at an authorised bank branch
Where: Authorised public sector bank branch. Due: Before the return due date under Sec 263(1) (old 139(1)) and before filing
File ITR-2 (ITR-3 if business income) with a separate Schedule CG row for each property, Sec 82 (old Sec 54) deduction details and CGAS details
Where: https://www.incometax.gov.in > e-File > Income Tax Returns. Due: AY 2026-27: 31 July 2026 (ITR-2)
Track the 2 and 3 year deadlines; if CGAS is unused, offer it to tax in the year the 3-year period ends
Where: Internal diary. Due: 3 years from the date of transfer
DeliverablesWhat you get · 3 items
Capital gains computation with exemption note
When: Before filing
CGAS deposit guidance and receipt check
When: Before the due date
Filed ITR acknowledgement
When: Same day
Questions people ask
Can I buy two flats with the gain?
Only if the gain is ₹2 crore or less, and only once in your life.
Do I need to reinvest the whole sale price?
No. Under Sec 54 only the capital gain needs to be reinvested (Sec 54F, for non-house assets, needs the net sale price).
I bought the new house 10 months before selling the old one. Does it count?
Yes. Purchase up to 1 year before the transfer qualifies.
What happens if I do not use the CGAS money?
The unused amount is taxed as long-term gain in the year the 3-year period from the sale ends.
Is there a cap?
Yes. New house cost above ₹10 crore is ignored from AY 2024-25.
Your Savvy is a verified professional. Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.