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Section 54 Capital Gains Exemption Calculator

Sold a house and buying another? The gain is exempt up to what you reinvest, stamp duty included, with the two-house option and the ₹10 crore cap.

Updated · By Niraj Kumar · 16 sources

What you sold

The asset you sold wasThe asset you sold was
₹

₹1.5 Cr

₹
₹

₹50 L

₹

Held 135 months: long-term.

You

Resident in IndiaResident in India
₹

Sets the surcharge band: 15% on this gain.

The house you are buying

₹

₹90 L

₹

Duty is charged on this instead when it is higher than the price.

In whose nameIn whose name
Section 54 exemption₹72,90,945of a ₹72,90,945 gain; tax saved ₹14,72,575
Stamp duty
₹5,40,000
6% of ₹90,00,000
Registration
₹30,000
1%, capped at ₹30,000
Saved by a woman's name
₹90,000
Against a man buying alone
Long-term capital gain
₹72,90,945
20% with indexation: the cheaper of the two methods
Section 54 exemption
₹72,90,945
On ₹95,70,000 reinvested, stamp duty included
Tax payable
₹0
On ₹0, with 15% surcharge and 4% cess
Tax saved
₹14,72,575
TDS by the buyer (1%)
₹1,50,000
On sales of ₹50 lakh or more

How much of the gain the new house covers

100% of the gain is exempt. The whole gain is covered.

12.5% flat or 20% with indexationBought before 23 July 2024, a resident pays whichever is lower. Indexation uses CII 384 for 2026-27.
MethodCostGainExemptTax
12.5% without indexation₹50,00,000₹98,50,000₹95,70,000₹41,860
20% with indexation (lower)₹75,59,055₹72,90,945₹72,90,945₹0

How is the Section 54 exemption calculated?

Section 54 (section 82 of the 2025 Act) exempts the long-term gain on a house up to what the new house costs, including its stamp duty and registration. With a ₹72,90,945 gain and ₹53,30,000 reinvested, ₹53,30,000 is exempt. You only need to reinvest the gain, not the whole sale price.

stamp = max(price, circle value) × duty% (+ cess on duty); registration = value × reg% (capped in some states); new house cost C = price + stamp + registration, counted up to ₹10 crore; net consideration N = sale price − transfer costs; LTCG = N − cost (or N − indexed cost); Section 54 (82): exemption = min(LTCG, C); Section 54F (86): exemption = LTCG × C ÷ N, at most LTCG; tax = (LTCG − exemption) × 12.5% (or 20% indexed) × (1 + surcharge) × 1.04

This page uses the same method as the Stamp Duty & Capital Gains Planner (India), which explains each term and assumption in full.

Worked example

A flat bought in June 2015 for ₹50 L is sold for ₹1.5 Cr, and ₹50 L goes into a new flat in Pune.

  1. 1Net consideration: ₹1,48,50,000
  2. 2Gain at 12.5% without indexation: ₹98,50,000
  3. 3Gain at 20% with indexation: ₹72,90,945
  4. 4New house cost with ₹3,30,000 of duty and registration: ₹53,30,000
  5. 5Exemption = min(gain, cost) = ₹53,30,000
  6. 6Tax on the remaining ₹19,60,945: ₹4,69,058

₹10,03,517 saved. Reinvesting ₹72,90,945 would exempt the whole gain.

Frequently asked questions

Can I buy two houses under Section 54?

Once in your life, if the long-term gain is ₹2 crore or less, you can split it across two houses in India and claim both. The choice cannot be made again. Above ₹2 crore, only one new house qualifies.

How long do I have to buy the new house under Section 54?

You can buy it up to 1 year before the sale or up to 2 years after, or finish building it within 3 years. Any amount not invested by the return's due date has to be deposited in a Capital Gains Account Scheme account to keep the exemption.

Sources

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