TL-PCG
Property Capital Gains and Sec 54
Selling a property: the lower of the two tax options, and how to bring it to zero with a new house or bonds.
You need: Buy and sell dates and prices
Sample: Selling for ₹1.5 crore a flat bought in 2012 for ₹50 lakh, reinvesting part. Switch to “Use my own numbers” to run it on yours.
₹0 tax after exemptions
Long-term gain (held 159 months). Best option: 20% with indexation (bought before 23 July 2024), tax ₹11,64,800 before exemptions. Your reinvestment saves ₹11,64,800.
12.5% without indexation
Gain ₹1,00,00,000
₹13,00,000
20% with indexation (bought before 23 July 2024)
Gain ₹56,00,000
₹11,64,800
Lower: we use this
Bring it down
Sec 54 new house: ₹40,00,000. Sec 54EC bonds: ₹16,00,000. Taxable gain left: ₹0.
Invest ₹56,00,000 in a new house (Sec 54) or up to ₹50,00,000 in 54EC bonds within 6 months.
Deadlines
- 54EC bonds (NHAI, REC, PFC, IRFC)15 Mar 2026
- Buy the new house (Sec 54)15 Sept 2027
- Construct the new house (Sec 54)15 Sept 2028
- Bought the new house up to a year before? It counts15 Sept 2024
- Unspent amount into the Capital Gains Account SchemeBefore your ITR due date for FY 2025-26