Moment guide · FY 2026-27

I sold a property

How do I save tax after selling a house or plot?

Sec 54Sec 54FSec 54ECSec 45Sec 48Verified 2026-08-09

₹50 lakh is the FY cap for 54EC bonds, while section 54 or 54F can shelter a qualifying residential reinvestment up to ₹10 crore. First classify the asset, then match the section, timing and lock-in. If you cannot reinvest before filing, CGAS must be used by the ITR due date, not year-end.

Your legitimate options

Every route the statute actually gives you — with its condition, cap and deadline.

Route	Condition	Cap / deadline
S.54 — reinvest in one residential house	Asset sold is a residential house (LTCG); buy within 2 yrs / construct within 3 yrs (or 1 yr before)	Exemption capped at ₹10 crore; new house locked 3 years
S.54F — any asset → residential house	Asset sold is NOT a house; invest full net consideration; max one other house owned	Proportionate if partial reinvestment; ₹10 crore cap
S.54EC — NHAI/REC-class bonds	Land/building LTCG; invest within 6 months	₹50 lakh per FY; 5-year lock-in
CGAS deposit	Can't reinvest before filing? Park gains in Capital Gains Account Scheme BY THE ITR DUE DATE — not by year-end	Unused balance taxed when the window lapses

The #1 trap

The CGAS deadline is the ITR due date (e.g. 31 July), not 31 March — missing it forfeits the exemption even if you buy the new house in time.

The decision path

Follow it top to bottom — the first condition that matches is your answer.

IF the sold asset is a residential house and the gain is long-term → test section 54 reinvestment in one residential house.
IF the sold asset is not a house and you can invest the full net consideration → test section 54F and the one-other-house condition.
IF the gain is from land or building and a bond route is suitable → invest in NHAI/REC-class bonds within 6 months, subject to ₹50 lakh per FY.
IF the qualifying reinvestment cannot be completed before filing → deposit the unused gain in CGAS by the ITR due date.
IF the new house is sold before 3 years or the CGAS window lapses → exemption is at risk and the unused balance is taxed when the window lapses. [VERDICT: choose the section before choosing the investment.]

Worked example

Anita, architect

Anita sells a residential house and has a long-term capital gain of ₹18,00,000. She buys one qualifying residential house within the section 54 timing window for ₹14,00,000. Section 54 exempts the gain to the extent invested, so ₹14,00,000 of the gain is sheltered. The taxable balance is ₹18,00,000 minus ₹14,00,000 = ₹4,00,000. That balance is not automatically exempt. Anita's final rate then depends on her total income, surcharge slab and cess — a five-minute call with us dials it in. If she cannot buy before filing, she deposits the intended amount in CGAS by the ITR due date. A deposit made on 31 March is not enough if the ITR due date has already passed. If instead her gain came from a non-house asset and she used section 54F, the test would be different: full net consideration is relevant, partial reinvestment produces proportionate exemption, and the ₹10 crore cap applies. If she chose bonds, ₹50,00,000 is the maximum investment per FY and the lock-in is 5 years. Anita also records the new house restriction: selling it before 3 years can disturb the relief. She keeps the purchase deed, payment trail, sale computation and CGAS records for review. Final tax saved depends on her cost of acquisition, applicable rate and surcharge — we can compute it once we have the sale deed and cost basis.

Questions people actually ask

What is the section 54EC investment limit?

₹50 lakh per FY is the section 54EC cap for NHAI/REC-class bonds. The investment must follow the land/building LTCG route and be made within 6 months; the lock-in is 5 years.

When should I deposit capital gains in CGAS?

Section 54/54F requires CGAS deposit by the ITR due date if the intended reinvestment is not yet made. A 31 March deposit is not the controlling deadline.

How long must I keep the replacement house?

3 years is the lock-in for the new house under the section 54 route. Selling earlier can put the exemption at risk.

Does section 54F cover sale of a plot?

Section 54F can apply when the asset sold is not a house, if the full net consideration is invested in a residential house and the one-other-house condition is met. Partial investment gives proportionate relief.

What happens to unused CGAS money?

Section 54 CGAS unused balance is taxed when the permitted window lapses. Keep the deposit, utilisation and filing-date records together.

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Sections: 54, 54F, 54EC, 45, 48 · Last verified 2026-08-09 · Reviewed by Harun Raaj & Associates, Chartered Accountants. Every figure cites the Income-tax Act, 1961 (with ITA 2025 mapping via our section index).