{"id":9018,"date":"2026-05-27T22:47:32","date_gmt":"2026-05-27T17:17:32","guid":{"rendered":"https:\/\/tradebrains.in\/money\/?p=9018"},"modified":"2026-05-27T22:47:34","modified_gmt":"2026-05-27T17:17:34","slug":"how-can-you-sell-property-pay-no-tax-on-capital-gains-heres-how-one-investor-did-it-legally","status":"publish","type":"post","link":"https:\/\/tradebrains.in\/money\/how-can-you-sell-property-pay-no-tax-on-capital-gains-heres-how-one-investor-did-it-legally\/","title":{"rendered":"How Can You Sell Property & Pay No Tax on Capital Gains? Here\u2019s How One Investor Did It Legally"},"content":{"rendered":"\n
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Synopsis:<\/strong> While it might seem almost impossible to save tax after a certain amount, especially when you have made significant long-term capital gains (LTCG). This article explains simple ways to legally pay zero income tax when selling a property, under both the old and new income tax regimes. <\/em><\/p>\n<\/blockquote>\n\n\n\n

The sale of property is usually seen as an achievement until one considers paying capital gains tax on their profit. In most cases, capital gains account for a lot of the profit that will be taxed, hence reducing the gains made from selling. But through Section 54 of the Income Tax Act, it becomes possible to convert capital gains tax to zero as long as the gains have been invested in another property.<\/p>

\"scapia<\/a><\/div>\n\n\n\n

What is Section 54 of the Income Tax Act?<\/strong><\/h2>\n\n\n\n

Long-term capital gains arising out of the sale of a residential house by an individual\/HUF and the reinvestment of capital gains therein for the purchase or construction of another residential house shall be exempt under Section 54 <\/strong>of the Income Tax Act. However, this exemption can be claimed only from gains made from the sale of residential house property and only when the individual has bought\/constructed another residential house property within the stipulated time period.<\/p>\n\n\n\n

Key Features and Eligibility of Section 54 Exemption <\/strong><\/h3>\n\n\n\n
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  • Applicable to Individuals and HUFs only<\/li>\n\n\n\n
  • Applies to long-term capital gains from residential property<\/li>\n\n\n\n
  • New house must be purchased within 2 years<\/strong> or constructed within 3 years<\/strong><\/li>\n\n\n\n
  • Property must be located in India<\/li>\n\n\n\n
  • Exemption is limited to lower of capital gain or investment amount (up to \u20b910 crore<\/strong> cap)\u00a0<\/li>\n<\/ul>\n\n\n\n

    Case Study: How Mithun Converted \u20b950 Lakh Capital Gain into Zero Tax<\/strong><\/p>