Mr.A sells a residential property on 30/3/2026 for Rs.17600000/
cost of acquistion on1/4/2001 Rs. 2386000/-
indexed cost on 30/3/2026 Rs.8973240
capital gains without considering indexed cost is Rs.15113500 after considering indexation is Rs. 8526760 what is amount invest to avail deuction under Sec54?
Rs 15113500 or Rs.8526760. Mr.A has received Rs, 90,00,000 on 30/3/2026 balance to be recd. in May 2026 in which F.Y. does the long term capital gians arise
whether in Fy.2025-26 or F.Y 2026-27?
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.
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