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Capital gains taxation query vip 1

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Vipul Gupta

7 Points Posted on 09 August 2025

Hi,

Can anyone comment on the LTCG taxation on sale of house property in following case?

Year 1 ltcg 50 lakh on sale of house property. Bonds purchased under section 54EC 40 lakhs. Amount deposited in CGAS 20 lakhs. How much will be the ltcg liable to tax - a. 0 lakh, b. 10 lakhs, c. 30 lakhs.

Year 4 no property purchased hence nil withdrawl from Cgas. How much will be the ltcg liable to tax - a. 0 lakh, b. 10 lakh, c. 20 lakh, d. 50 lakh.

Please also give the reasons why?

Replies (3)

Quick Summary

This discussion explores the Capital Gains Tax (LTCG) implications following the sale of a house property. It specifically addresses how investments in Section 54EC bonds and deposits into a Capital Gains Account Scheme (CGAS) affect the taxable amount. The user seeks clarification on the exact LTCG liable for tax in different scenarios, including withdrawals from CGAS and the effective deduction achieved through these investments.