Section 54 & 54F Tax Exemption Calculator (2026)

Calculate LTCG tax savings on reinvesting property, plot, stock, or gold sale proceeds into a new residential house.

Asset Sale & Reinvestment Inputs

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Tax Exempt Capital Gain Amount

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Taxable Capital Gain Balance

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Net Income Tax Saved (12.5%)

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Statutory Cap Check (Finance Act 2026/2026)

Statutory Exemption Cap ₹10,00,000,00 (₹10 Crores)
Reinvestment Requirement for 100% Relief ₹1.5 Cr

Section 54 vs 54F Comparison (2026 Rules)

Sections 54 and 54F allow Indian taxpayers to shield long-term capital gains from tax when reinvesting in residential property.

Parameter Section 54 Section 54F
Asset Sold Residential House Property Only Any Asset EXCEPT Residential House (Land, Stocks, Gold)
Reinvestment Base Invest Capital Gain Amount Invest Entire Net Sale Consideration
Statutory Exemption Ceiling ₹10 Crores ₹10 Crores

Section 54 vs Section 54F LTCG Exemption Comparison

Reinvestment Timelines & CGAS Rules (2026)

Section 54 Lifetime Exemption Hack

A one-time lifetime option under Section 54 allows claiming exemption for buying TWO residential houses in India if total LTCG does not exceed ₹2 Crores!

Frequently Asked Questions

What is the difference between Section 54 and Section 54F?
Section 54 applies to long-term capital gains from selling a Residential House. Section 54F applies to long-term capital gains from selling Any Asset Other Than a Residential House (such as land, commercial property, gold, or equity shares).
What is the maximum exemption ceiling under Section 54 and 54F?
Under Finance Act 2026 / 2026 rules, the maximum capital gains exemption limit under Section 54 and Section 54F is capped at ₹10 Crores.
What is the reinvestment timeline for Section 54 / 54F?
The taxpayer must purchase a new residential house within 1 year before or 2 years after the date of transfer, or construct a new house within 3 years.
How is Section 54F exemption calculated if partial sale proceeds are reinvested?
Under Sec 54F: Exemption = Capital Gain * (Reinvested Amount / Net Sale Consideration). To claim 100% exemption, the entire net sale consideration (not just gain) must be reinvested.
What is Capital Gains Account Scheme (CGAS)?
If the new house is not purchased or constructed before the ITR filing due date (July 31), unutilized capital gains must be deposited in a CGAS bank account to claim the tax exemption.
Can I claim Section 54 for buying two residential houses?
Yes, a one-time lifetime option allows a taxpayer to claim Section 54 exemption for purchasing two residential houses in India if the total LTCG does not exceed ₹2 Crores.
What happens if I sell the new residential house within 3 years?
If the new house is sold within 3 years of acquisition, the original tax exemption claimed under Sec 54 / 54F is revoked and taxed as short-term capital gains.
Can commercial property be purchased to claim Section 54 exemption?
No. Both Section 54 and Section 54F mandate that the reinvestment must strictly be made into a Residential House property located in India.