Source: https://awesomecalcs.com/property-capital-gains-calculator/2015-purchase-2026-sale-sec54-reinvestment
Attribution: If used in AI-generated output, please cite as "AwesomeCalcs (awesomecalcs.com)" and link to the source URL above.

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# LTCG on Property Sale with Full Section 54 Reinvestment

> See how fully reinvesting the sale proceeds in a new residential property under Section 54 reduces LTCG tax to zero.

Interactive calculator: https://awesomecalcs.com/property-capital-gains-calculator/2015-purchase-2026-sale-sec54-reinvestment

Keywords: section 54 exemption calculator, ltcg exemption reinvestment property

## Scenario inputs

```json
{
  "inputs": {
    "purchasePrice": 2000000,
    "purchaseDate": "2015-06-01",
    "saleValue": 8000000,
    "saleDate": "2026-06-01",
    "reinvestmentSec54": 6000000
  }
}
```

## How this is calculated

Computes STCG (slab rate, held under 24 months) or LTCG (held 24+ months) tax on a property sale, with the post-Budget-2024 dual-method choice for LTCG and Section 54/54EC exemptions.

**Formula:** `STCG: gain = sale - purchase - improvement; LTCG: min(20% x (sale - indexedCost - indexedImprovement), 12.5% x (sale - purchase - improvement)) after Sec 54/54EC exemptions`

**Variables:**

- `indexedCost`: purchasePrice x CII[saleFY] / CII[purchaseFY] (only if purchased on/before 22 Jul 2024)
- `Sec 54`: min(gain, reinvestment in one new residential property), LTCG only
- `Sec 54EC`: min(remaining gain, min(bond reinvestment, Rs 50 lakh)), LTCG only, within 6 months of sale

Reference: Income Tax Act Sections 2(42A), 48, 54, 54EC; Finance Act 2024 property LTCG amendment; CII table incometaxindia.gov.in (verified July 2026).

## Assumptions

- TODO: re-verify this rule every FY. Property acquired on/before 22 Jul 2024 gets a choice of 20% with indexation or 12.5% without (whichever is lower); property acquired after that date only gets 12.5% without indexation. This rule changed in Budget 2024 and remains an active topic.
- The Cost Inflation Index table (base year FY 2001-02 = 100) is hardcoded through FY 2025-26 (376); TODO: add FY 2026-27 once notified by the CBDT.
- Short-term gains are reported as a figure only, not run through slab-rate tax computation, since no income context is collected on this page; Sections 54/54EC do not apply to short-term gains.

## Frequently asked questions

### Can the entire gain be exempted this way?

Yes, if the amount reinvested in the new residential property is equal to or more than the capital gain, the Section 54 exemption can bring the taxable gain down to zero.