Section 54 & 54F Exemption – Capital Gains Tax on Property
Section 54 & 54F Exemption on Property Sale (2026 Guide)
Save Capital Gains Tax Legally on Property Sale in Delhi
If you have sold a residential property and are worried about paying heavy capital gains tax, you may be eligible for exemption under Section 54 or Section 54F of the Income Tax Act.
At CA Shiwali (South Delhi), we help property owners, NRIs, and investors legally reduce or eliminate capital gains tax through proper planning and documentation.
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📍 Serving: South Delhi, Greater Kailash, Hauz Khas, Saket, and surrounding areas
What is Section 54?
Section 54 allows exemption from Long-Term Capital Gains (LTCG) when:
You sell a residential property
You reinvest the capital gain into another residential property in India
Key Conditions – Section 54
Property sold must be a residential house
Capital gain must be long-term (held more than 24 months)
New house must be:
Purchased within 1 year before or 2 years after sale
OR constructed within 3 years
Amount not used before ITR filing must be deposited in Capital Gains Account Scheme (CGAS)
What is Section 54F?
Section 54F applies when:
You sell any asset (plot, commercial property, shares etc.)
And invest the sale proceeds in a residential house
Key Conditions – Section 54F
You should not own more than 1 residential property at the time of sale (other than new one)
Entire sale consideration must be invested to get full exemption
Same 1 year / 2 year / 3 year rule applies
Section 54 vs 54F – Quick Comparison
| Basis | Section 54 | Section 54F |
|---|---|---|
| Asset Sold | Residential House | Any Long-Term Asset |
| Amount Invested | Capital Gain | Full Sale Consideration |
| Multiple Property Restriction | No major restriction | Strict restriction |
Capital Gains Account Scheme (CGAS)
If you cannot invest immediately, you must deposit the amount in the Capital Gains Account Scheme before filing ITR.
Many taxpayers miss this deadline and lose exemption benefits.
We ensure:
✔ Correct calculation
✔ Proper documentation
✔ CGAS compliance
✔ Safe exemption claim
Common Mistakes People Make
Missing 54F ownership condition
Not depositing in CGAS before ITR deadline
Wrong capital gain calculation
Ignoring indexation benefit
Reinvesting in ineligible property
Even a small mistake can cost lakhs in tax.
Special Cases We Handle
Multiple property transactions
Builder delayed possession cases
- Builder agreement capital gains
Why Consult CA Shiwali in South Delhi?
Property tax specialist
Focused on capital gains planning
Local Delhi property transaction expertise
Practical tax-saving strategies
Transparent consultation
📞 Book Consultation Today – 9266032777
Frequently Asked Questions (FAQs)
1. Can I buy two properties under Section 54?
In certain cases, you can claim exemption for two properties once in a lifetime, subject to conditions.
2. What happens if I sell the new property within 3 years?
The exemption claimed earlier may be reversed and taxed.
3. Is stamp duty value considered?
Yes, under Section 50C, stamp duty value may be considered for capital gains calculation.
4. Can NRIs claim Section 54?
Yes, NRIs can claim Section 54 and 54F subject to conditions.
5. What if construction is not completed in 3 years?
Exemption may be withdrawn. Proper planning is essential.
Save Lakhs in Capital Gains Tax
Don’t guess. Don’t risk notices.
Plan your property reinvestment properly.
📞 Call CA Shiwali: 9266032777
📍 Office: South Delhi
💼 Property Capital Gains Specialist