Tax planning
Sec 86 (old 54F) exemption for gains on assets other than a house
What this means, checked by a CA
If you sell shares, land, gold or any non-house asset held long term and use the sale money to buy one house, the gain is exempt in proportion to what you invest. You must not own more than one other house on the date of sale. We check eligibility, compute the exempt share, guide the CGAS deposit and file the claim.
₹2,999
Per event, + 18% GST
- Delivered in 2 working days after sale papers and new house documents
- Due: New house bought 1 year before or 2 years after the transfer, or built within 3 years. Unused net consideration deposited in CGAS before the return due date (AY 2026-27: 31 July 2026 for ITR-2).
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 · 6 items
Sale documents of the original asset
Net consideration and transfer date
Gain computation for that asset
Input B in the formula
List of houses owned on sale date
More than one other house bars relief
New house agreement and payment proofs
Investment amount and dates
CGAS deposit receiptOptional
Unused amount before filing
Home loan sanction, if usedOptional
Check source of investment
DiscussionWhat we discuss · 6 items
How many residential houses do you (alone or jointly) own today, and on the date of sale?
More than one other house denies Sec 86 (old 54F)
What exactly did you sell, when did you buy it, and is the gain long term?
Sec 86 (old 54F) needs a long-term non-house asset
How much of the net sale proceeds (not just the gain) will go into the house?
Exemption is proportionate to net consideration
Is the new house ready, under construction or not yet chosen?
Decides CGAS deposit before filing
Do you plan to buy another house within 2 years, or sell the new one within 3?
Either claws back the exemption
Did you also sell a house this year (Sec 82, old Sec 54) or invest in bonds (Sec 85, old Sec 54EC)?
Map each rupee to one exemption
FormsForms we file · 7 items
Confirm eligibility: long-term non-house asset, individual or HUF, house count on transfer date
Where: Internal working. Due: Before sale where possible
Compute the gain on the original asset (see CGN-EQT-01, CGN-IMM-02 or other)
Where: Internal working. Due: In the quarter of sale
Compute exemption
Exemption = Long-term gain x (amount invested in new house plus CGAS deposit, capped at ₹10 crore) / net consideration. If amount invested is at least the net consideration, whole gain is exempt
Where: Internal working. Due: Before filing
Pay advance tax on the part not expected to be exempt
Where: https://www.incometax.gov.in e-Pay Tax. Due: Instalment of the quarter of sale
Deposit unused net consideration in CGAS
Where: Authorised bank branch under Capital Gains Accounts Scheme 1988. Due: Before the return due date and before filing
File ITR-2 (or ITR-3) claiming Sec 86 (old Sec 54F) in Schedule CG with house cost, date and CGAS details
Where: https://www.incometax.gov.in > e-File > Income Tax Returns. Due: AY 2026-27: 31 July 2026 (ITR-2)
Diary the 2-year, 3-year and second-house checks
Where: Internal diary. Due: Up to 3 years after transfer
DeliverablesWhat you get · 2 items
Sec 86 (old 54F) eligibility note and exemption working
When: Before filing
Filed ITR acknowledgement
When: Same day
Questions people ask
Can I claim 54F on equity mutual fund or share gains?
Yes. Any long-term asset other than a residential house qualifies, including shares and funds.
I own one flat already. Can I still claim?
Yes. The bar is owning more than one residential house other than the new one on the date of transfer.
Does a house bought within one year before the sale count as the 'other' house?
The tutorial excludes a house bought within one year before the transfer (the new house) from the count.
What is the cap?
Investment above ₹10 crore is ignored from AY 2024-25.
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