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Section 54F Exemption Calculator

Sold a plot, shares or gold? Work out the 54F exemption with the proportionate formula, the ₹10 crore cap and stamp duty counted in the new house's cost.

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
Own 2+ other houses on the sale dateOwn 2+ other houses on the sale date
₹

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 54F exemption₹63,47,778of a ₹98,50,000 gain; tax saved ₹9,48,993
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
₹98,50,000
12.5% without indexation: the cheaper of the two methods
Section 54F exemption
₹63,47,778
On ₹95,70,000 reinvested, stamp duty included
Tax payable
₹5,23,582
On ₹35,02,222, with 15% surcharge and 4% cess
Tax saved
₹9,48,993
TDS by the buyer (1%)
₹1,50,000
On sales of ₹50 lakh or more

How much of the gain the new house covers

64% of the gain is exempt. Investing ₹1,48,50,000 in all, ₹52,80,000 more, would exempt all of it: under 54F that is the whole net sale price.

Not bought yet? Deposit the amount in a Capital Gains Account Scheme account before your return's due date to keep the exemption, and buy within 2 years or build within 3.

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 (lower)₹50,00,000₹98,50,000₹63,47,778₹5,23,582
20% with indexation₹75,59,055₹72,90,945₹46,98,609₹6,20,087

How is the Section 54F exemption calculated?

Under Section 54F (section 86 of the 2025 Act), exemption = long-term gain × cost of the new house ÷ net sale consideration. Reinvest ₹95,70,000 of a ₹1,48,50,000 sale, including stamp duty, and ₹63,47,778 of a ₹98,50,000 gain is exempt. To exempt the whole gain, reinvest the whole net consideration.

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 resident sells a plot for ₹1.5 Cr (₹1,50,000 brokerage), bought in June 2015 for ₹50 L, and buys a ₹90 L flat in Pune in a woman's name. Other income ₹18 L.

  1. 1Stamp duty in Pune: ₹90,00,000 × 6% = ₹5,40,000; registration ₹30,000
  2. 2Cost of the new house: ₹90,00,000 + ₹5,70,000 = ₹95,70,000
  3. 3Net consideration: ₹1,50,00,000 − ₹1,50,000 = ₹1,48,50,000
  4. 4LTCG at 12.5% without indexation: ₹1,48,50,000 − ₹50,00,000 = ₹98,50,000, tax before relief ₹14,72,575
  5. 5LTCG at 20% with indexation: ₹1,48,50,000 − ₹75,59,055 = ₹72,90,945, tax before relief ₹17,43,994
  6. 6Section 54F: ₹98,50,000 × ₹95,70,000 ÷ ₹1,48,50,000 = ₹63,47,778 exempt
  7. 7Tax on the remaining ₹35,02,222 at 12.5% without indexation: ₹5,23,582

₹9,48,993 of tax saved for ₹5,70,000 of stamp duty and registration. Investing ₹1.49 Cr in all would exempt the whole gain.

Frequently asked questions

Why does Section 54F use the sale price and not the gain?

54F expects the whole sale proceeds to go into the house, not just the profit. If you reinvest only part, it exempts the same share of the gain: put 60% of the net consideration into a house and 60% of the gain is exempt. Under Section 54, which applies when the asset sold is itself a house, reinvesting just the gain is enough.

Can I claim 54F if I already own a house?

Yes, if it is only one. On the date you sell, you may own at most one residential house besides the new one. You lose the exemption if you buy a second extra house within 2 years, build one within 3 years, or sell the new house within 3 years. In that case the exempt amount is taxed in the year it happens.

Does 54F apply to selling shares or mutual funds?

Yes. Any long-term capital asset that is not a residential house qualifies: listed or unlisted shares, equity funds, gold, a plot, commercial property or a stake in a business. Shares are long-term after 12 months, and land after 24. The reinvestment must go into one residential house in India.

Sources

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