CG on property sold after construction of a house

You cannot claim exemption under Section 54 against the house completed in November 2024 because its completion occurred nearly two years prior to your September 2026 sale, placing it outside both the 1-year pre-sale acquisition window and the 3-year post-sale construction period. To shield your ₹9.0 Lakhs LTCG from taxation, you can invest the gains in Section 54EC bonds within 6 months of the sale or acquire/construct a new residential property within the statutory post-sale limits.

Thank you sir for your response.

As the house was ready for use in Aug 25 only because furniture work ongoing. Can't that be considered as under construction one?

Just want to know what document is required to prove that my house was constructed on this date or month. Its independent house given for constuction to a engineer on contract.

Dates are the whole issue here, so line them up first.

For Section 54, a house you buy must be bought 1 year before or 2 years after the sale. A house you construct gets 3 years after the sale. Your house was finished in Nov 2024 and you moved in Aug 2025, both more than a year before the Sept 2026 sale. On the plain wording that looks hard to claim, so I would not plan your tax around it. Please have a CA check the facts before you decide.

What still works for a Rs 9 lakh LTCG:
- Section 54EC bonds (REC, PFC, IRFC and similar): invest up to Rs 50 lakh within 6 months from the date of sale. Lock-in is 5 years. This is the one with a hard deadline, so do not wait for the ITR.
- A fresh residential house: buy within 2 years or complete construction within 3 years after the sale. If you have not used the money by the ITR due date, deposit it in a Capital Gains Account Scheme account and file the ITR with that proof.
- Tax rate check: property bought before 23 July 2024 lets you take the lower of 12.5% without indexation or 20% with indexation, so compute both before you decide how much to save.

If you do go ahead and claim on the self-built house, these are the documents that usually carry the case when the contractor gave no completion certificate:
- Bank statements showing every payment to the contractor and material suppliers
- Contractor bills and agreement, plus the sanctioned building plan
- Completion or occupancy certificate from the municipality or panchayat if you can still get one
- Property tax assessment, electricity and water connection dates, to show when it was ready and occupied

This [Section 54 and 54EC guide for house sales](https://taxgarden.in/blog/capital-gains-tax-sale-of-house-property-india-fy-2026-27) has the timeline table and the Capital Gains Account rules.

Thank you for the detailed response.