Long Term Capitalgains on sale of residential property

Transfer of capital asset - yes

As per definition,  long term capital gain arise. 

Invest in the following:Get exemption

Sec 54f - NEW OR EXTENSION OF HOUSE PROPERTY

Sec 54EC CAPITAL INFRASTRUCTURE BONDS

In F.Y 25-26 , please refer section 45(1) , its clearly state that Capital Gains aries , when transfer took please , and transfer has been defined under section 2(47) of the Income tax act 1961 . 

so refer both the section of the Income tax act 1961 , as mentioned above .

Take more opinion on this as well .

Under Section 54, the exempt amount equals the capital gains you reinvest, not the full sale price. For a March 2026 sale on a property purchased before July 2024, you can still choose between 12.5% without indexation or 20% with indexation. With indexation your capital gains are Rs 85.27 lakh and reinvesting that amount in a residential house within 2 years gives full exemption. Without indexation the gain is Rs 1.51 crore, so the indexation route saves both the tax rate and the reinvestment burden. This [capital gains tax guide for AY 2026-27](https://taxgarden.in/blog/capital-gains-tax-india-ltcg-stcg-ay-2026-27) explains the Section 54 timeline, the Capital Gains Account Scheme for parking funds if the new purchase takes time, and the ITR-2 reporting steps.