investment

Capital Gains on Property Sale: Tax & Reinvestment

Tax implications on selling property and tax-efficient reinvestment options under Section 54.

GetYourCA Team
8 January 2026·Updated 8 January 20261 min read12.5K views

Capital Gains on Property#

Long-Term Capital Gains#

  • Property held >2 years
  • 20% with indexation
  • Or 12.5% without indexation

Indexation Benefit#

Indexed Cost = Purchase Price × CII_Sale / CII_Purchase

Reinvestment Options#

Section 54#

  • Reinvest in one residential property
  • Capital gains up to ₹2 crore

Section 54EC#

  • Bonds (NHAI, REC)
  • Max ₹50 lakh

Points to Remember#

  • One property per year
  • 3-year lock-in for new property

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GetYourCA Team

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Disclaimer

We have taken utmost care to research and write this article for your information. However, tax laws are complex and subject to frequent changes. This article is for general guidance only and should not be considered professional advice. Individual circumstances vary significantly — what works for one person may not apply to another.

Before making any tax-related decisions, we strongly recommend consulting with a qualified Chartered Accountant or tax professional who can assess your specific situation. We do not accept any liability for decisions made based on this information.

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