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Tax Saving Strategies for your Property Gains-

Buy a house? Pay Tax. Sell your house? Pay tax. Enough! Here's your chance to minimise tax burden and protect your long-term capital gains.
Tax

What are Long-Term Capital Gains?

Key Change in LTCG Taxation for Real Estate in Union Budget 2024

Purchase DateRule Applied
Before July 23, 2024Choose between the old or new tax rule
On or After July 23, 2024New tax rule automatically applied

What is Indexation, and Why Is It Important?

Calculating LTCG on Real Estate Sale

Comparing Old and New Tax Rules

What is Section 54 and how can it help Priya save taxes?

AspectsDetails
Sale DetailsPriya sold her property in August 2024 for ₹1.5 crores.
Section 54 ExemptionSave on LTCG tax by reinvesting profits from the sale into a new residential property.
(Up to 1 Crores)
Reinvestment Options1) Buy a new property within 1 year before selling the old one.
2) Buy a new property within 2 years after selling the old one.
3) Construct a new house within 3 years after selling the old one.

What is Section 54EC and how can it help Priya save taxes?

Eligibility and Investment Requirements:

Aspects  Details  
Sale DetailsPriya sold her property in August 2024 for ₹1.5 crores.
Section 54EC ExemptionSave on LTCG tax by reinvesting profits from the sale into Section 54 EC bonds or Capital gains bonds such as National Highway Authority of India (NHAI bonds), or Power Finance Corporation Limited(PFC) bonds, within 6 months of sale. 
(Up to 5 lakhs)
Reinvestment Options1) Buy a new property within 1 year before selling the old one.
2) Buy a new property within 2 years after selling the old one.
3) Construct a new house within 3 years after selling the old one.

By investing ₹5 lakhs in these bonds, Priya can avoid paying LTCG tax on the amount invested.

Combining Section 54 and Section 54EC

Conclusion

Summary

FAQs

What happens if I sell a commercial property instead of a residential property?

Does the new LTCG rule apply to inherited properties?

Can I use multiple properties to claim Section 54 exemptions?

Are there any limits on the reinvestment amount under Section 54?

Can non-resident Indians (NRIs) benefit from these LTCG exemptions?

Are there any tax implications if I reinvest but later sell the new property?

What if the property sale involves joint ownership?

Recent Posts

Should you buy or rent a house?

Expense Ratio

How the rich save taxes?

Direct or Regular Mutual fund—which one should you pick?

ETF

Reads

Tax Saving Strategies for your Property Gains-

Buy a house? Pay Tax. Sell your house? Pay tax. Enough! Here's your chance to minimise tax burden and protect your long-term capital gains.

What are Long-Term Capital Gains?

Key Change in LTCG Taxation for Real Estate in Union Budget 2024

Purchase DateRule Applied
Before July 23, 2024Choose between the old or new tax rule
On or After July 23, 2024New tax rule automatically applied

What is Indexation, and Why Is It Important?

Calculating LTCG on Real Estate Sale

Comparing Old and New Tax Rules

What is Section 54 and how can it help Priya save taxes?

AspectsDetails
Sale DetailsPriya sold her property in August 2024 for ₹1.5 crores.
Section 54 ExemptionSave on LTCG tax by reinvesting profits from the sale into a new residential property.
(Up to 1 Crores)
Reinvestment Options1) Buy a new property within 1 year before selling the old one.
2) Buy a new property within 2 years after selling the old one.
3) Construct a new house within 3 years after selling the old one.

What is Section 54EC and how can it help Priya save taxes?

Eligibility and Investment Requirements:

Aspects  Details  
Sale DetailsPriya sold her property in August 2024 for ₹1.5 crores.
Section 54EC ExemptionSave on LTCG tax by reinvesting profits from the sale into Section 54 EC bonds or Capital gains bonds such as National Highway Authority of India (NHAI bonds), or Power Finance Corporation Limited(PFC) bonds, within 6 months of sale. 
(Up to 5 lakhs)
Reinvestment Options1) Buy a new property within 1 year before selling the old one.
2) Buy a new property within 2 years after selling the old one.
3) Construct a new house within 3 years after selling the old one.

By investing ₹5 lakhs in these bonds, Priya can avoid paying LTCG tax on the amount invested.

Combining Section 54 and Section 54EC

Conclusion

Summary

FAQs

What happens if I sell a commercial property instead of a residential property?

Does the new LTCG rule apply to inherited properties?

Can I use multiple properties to claim Section 54 exemptions?

Are there any limits on the reinvestment amount under Section 54?

Can non-resident Indians (NRIs) benefit from these LTCG exemptions?

Are there any tax implications if I reinvest but later sell the new property?

What if the property sale involves joint ownership?

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Recent Posts

Should you buy or rent a house?

Expense Ratio

How the rich save taxes?

Direct or Regular Mutual fund—which one should you pick?

ETF

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Comprehensive

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Case Studies

This isn’t a normal masterclass. You will get a comprehensive hands-on experience of various “Tax Strategies” with our proven case-study based approach.

Get access to in-house built powerful Old vs. New Tax regime calculator, tax handouts, and more.

Thousands have benefited you can too!

2000+ People have Already Saved Taxes

Tax Saving Strategy, Personal finance course, Finance with Dime, Financial freedom guide, Wealth-building strategies, Investing tutorials, Financial planning tools, Interactive finance classes, Finance community app, Master personal finance, Step-by-step guide to financial freedom,Tax-saving strategies', Mutual fund SIP guide, Income tax calculator,Best investment plans for 2024, NPS tax benefits, HRA tax exemption guide,Equity vs. debt mutual funds, How to file ITR online, Tax-free income sources, Old vs. new tax regime comparison, Top-performing SIPs in India, Retirement planning tips, Financial planning for millennials, Budgeting tips for professionals, Government schemes for senior citizens
Tax Saving Strategy, Personal finance course, Finance with Dime, Financial freedom guide, Wealth-building strategies, Investing tutorials, Financial planning tools, Interactive finance classes, Finance community app, Master personal finance, Step-by-step guide to financial freedom,Tax-saving strategies', Mutual fund SIP guide, Income tax calculator,Best investment plans for 2024, NPS tax benefits, HRA tax exemption guide,Equity vs. debt mutual funds, How to file ITR online, Tax-free income sources, Old vs. new tax regime comparison, Top-performing SIPs in India, Retirement planning tips, Financial planning for millennials, Budgeting tips for professionals, Government schemes for senior citizens

Why join Dime's Tax Strategy Masterclass?

Comprehensive

Practical

Case Studies

This isn’t a normal masterclass. You will get a comprehensive hands-on experience of various “Tax Strategies” with our proven case-study based approach.

Get access to in-house built powerful Old vs. New Tax regime calculator, tax handouts, and more.
Thousands have benefited you can too!

2000+ People have already saved Taxes

Tax Saving Strategy, Personal finance course, Finance with Dime, Financial freedom guide, Wealth-building strategies, Investing tutorials, Financial planning tools, Interactive finance classes, Finance community app, Master personal finance, Step-by-step guide to financial freedom,Tax-saving strategies', Mutual fund SIP guide, Income tax calculator,Best investment plans for 2024, NPS tax benefits, HRA tax exemption guide,Equity vs. debt mutual funds, How to file ITR online, Tax-free income sources, Old vs. new tax regime comparison, Top-performing SIPs in India, Retirement planning tips, Financial planning for millennials, Budgeting tips for professionals, Government schemes for senior citizens

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