Tax
What is Section 54 (Capital Gains Exemption)? — Meaning, Definition & Example
Definition
Section 54 provides exemption from LTCG tax on sale of residential property if the gains are reinvested in another residential property within specified time limits — purchase within 1 year before or 2 years after sale, or construction within 3 years.
💡 Real Example
If you sell a house for ₹1.5 crore with ₹50 lakh LTCG and buy another house for ₹60 lakh within 2 years, the entire ₹50 lakh LTCG is exempt from tax.
🇮🇳 Section 54 (Capital Gains Exemption) in Hindi / हिंदी में
धारा 54 — धारा 54 आवासीय संपत्ति बिक्री पर LTCG टैक्स से छूट प्रदान करती है यदि लाभ को निर्दिष्ट समय में दूसरी आवासीय संपत्ति में पुनर्निवेश किया जाए।
Section 54 (Hinglish) — Section 54 residential property sell karne pe LTCG tax se exemption deta hai agar profits ko doosri property mein reinvest karo specified time ke andar.
❓ Frequently Asked Questions
What is Section 54 (Capital Gains Exemption) in simple words?
Section 54 provides exemption from LTCG tax on sale of residential property if the gains are reinvested in another residential property within specified time limits — purchase within 1 year before or 2 years after sale, or construction within 3 years.
Can you give an example of Section 54 (Capital Gains Exemption)?
If you sell a house for ₹1.5 crore with ₹50 lakh LTCG and buy another house for ₹60 lakh within 2 years, the entire ₹50 lakh LTCG is exempt from tax.
What is Section 54 (Capital Gains Exemption) meaning in Hindi?
In Hindi, Section 54 (Capital Gains Exemption) is called धारा 54. धारा 54 आवासीय संपत्ति बिक्री पर LTCG टैक्स से छूट प्रदान करती है यदि लाभ को निर्दिष्ट समय में दूसरी आवासीय संपत्ति में पुनर्निवेश किया जाए।