How does Section 54 save capital gains tax on property sales?

Under Section 54 of the Income Tax Act, if you realize Long-Term Capital Gains from selling a residential property, you can claim 100% tax exemption by reinvesting the capital gain into another residential house property in India within 3 years for under-construction homes.

What is the new LTCG tax rate for real estate in India?

Under the Finance Act 2024, Long-Term Capital Gains on real estate held for more than 24 months are taxed at a flat rate of 12.5% without indexation (or 20% with indexation for properties acquired before July 23, 2024 under grandfathering provisions).

Tax Optimization Engine • Section 54 & 54F

Section 54 Capital Gains
Tax Saver Calculator

Calculate your statutory LTCG tax liability and legally eliminate taxes by reinvesting asset sale proceeds into under-construction residences at Mahindra Rivenza Baner Annex.

Sale Consideration (Total Selling Price) ₹ 1,50,00,000

₹50 Lakhs ₹2.0 Crores ₹4.0 Crores

Cost of Acquisition (Original Purchase Price) ₹ 60,00,000

₹20 Lakhs ₹1.2 Crores ₹2.5 Crores

Statutory Rules (Finance Act 2024)

• 12.5% Flat LTCG tax rate (plus applicable surcharge & 4% cess)

• 3 Years Window: Reinvest in an under-construction project like Mahindra Rivenza

• CGAS Deposit: Unutilized funds can be deposited into a Capital Gains Account Scheme before filing your ITR

Gross Capital Gains

₹ 90,00,000

Taxable amount before Section 54 exemption

Potential 12.5% Tax Liability: ₹ 11,25,000

Section 54 Tax Saved: ₹ 11,25,000

Net Tax Payable with Rivenza: ₹ 0 (100% Exempt)

Complete Exemption Reinvestment Target

Reinvest ₹ 90,00,000 into a new home at Mahindra Rivenza to pay ZERO capital gains tax.

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Section 54 Capital Gains Tax Saver Calculator

Section 54 Capital Gains
Tax Saver Calculator