Claim audit · FY 2026-27
“Sell your house, buy another, capital gains fully exempt under Section 54”
The condition that decides it
Works only for LTCG on a residential house (>24 months holding), reinvested in ONE residential property within 1 year before or 2 years after (3 years to construct), capped at ₹10 crore since AY 2024-25. STCG is never covered, and unused gains must go to CGAS by the ITR due date.
What the department sees
MEDIUM
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
An ₹1,20,00,000 house sold after 30 months with a ₹70,00,000 long-term gain: reinvesting ₹70,00,000 in one new residential property within 2 years exempts the full gain under section 54, since the reinvestment equals the gain and stays within the ₹10 crore cap. If only ₹50,00,000 is reinvested, the exempt amount is ₹50,00,000 and the remaining ₹20,00,000 is taxed at 12.5%, which is ₹2,50,000. If the same property were sold within 24 months, the gain would be short-term and section 54 would not apply at all — the full gain would be taxed at slab. Selling a second house within 3 years of the purchase triggers recapture of the exemption. The unused gain that is not reinvested before filing must be deposited in the Capital Gains Account Scheme by the ITR due date (31 July), not 31 March — missing it forfeits the exemption. The reel's blanket 'no tax' claim ignores the LTCG precondition, the one-property limit, the ₹10 crore cap and the CGAS deadline.
Questions people actually ask
There's a right way to do this
How do I save tax after selling a house or plot?
Sections: 54, 54F · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims