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Smart Money · Simple Words · India

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Tax

Section 54 Kya Hai? — Matlab, Definition & Example

Definition

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.

💡 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.

🇬🇧 English Mein (Section 54 (Capital Gains Exemption))

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.

❓ Common Questions

Section 54 kya hai simple words mein?
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.
Section 54 ka ek example do?
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) ko English mein kya kehte hain?
English mein ise Section 54 (Capital Gains Exemption) kehte hain. 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