Tax Mitigation Strategy

Capital Gains Advisory
Property & Assets Tax Planning

Selling inherited property, land, or commercial space in India? Minimize your Capital Gains tax liability legally using indexation benefits, Section 54/54EC reinvestment exemptions, and expert structuring.

Exemption Routes

Structuring Options

  • Section 54 Exemption

    Reinvest capital gains to purchase another residential property in India to claim 100% tax exemption.

  • Section 54EC Capital Gains Bonds

    Invest up to ₹50 Lakhs in specified government NHAI/REC bonds to claim tax exemption.

  • Cost Inflation Index (CII) Benefit

    Adjust property purchase price relative to inflation, significantly lowering taxable gains.

Optimizing Long-Term Capital Gains (LTCG)

For immovable property held in India for more than **24 months**, the gain is classified as Long-Term Capital Gain (LTCG) and taxed at **20% (plus surcharge and cess)** with indexation benefits. If held for less than 24 months, it is Short-Term Capital Gain (STCG) and taxed at your applicable slab rates.

To optimize this, our team provides expert simulations showing how much tax you can save through purchasing residential property under Section 54, buying a house under Section 54F (if the sold asset is not a residential house), or investing in 5-year lock-in capital gains bonds (Section 54EC).

Services Offered

  • Inflation-indexed cost of acquisition calculations
  • Evaluation of Section 54, 54F, and 54EC eligibility
  • Capital Gains Accounts Scheme (CGAS) setup and compliance guidance
  • Filing of ITR reporting the capital gains and claiming tax exemptions

Capital Gains Accounts Scheme

If you are unable to reinvest capital gains in a new property before the deadline for filing your income tax return (July 31st), you must deposit the unutilized amount in a designated **Capital Gains Account Scheme (CGAS)** bank account to claim the tax exemption.

We assist in preparing the required application forms and documentation to open and maintain CGAS accounts with authorized nationalized banks.

FAQs

Can I invest in 54EC bonds after 6 months?

No, Section 54EC requires that the investment in NHAI/REC/PFC bonds must be completed within **6 months** from the date of transfer/sale of the property.

Can I claim indexation on inherited property?

Yes, for inherited property, the cost of acquisition is the cost to the previous owner, and indexation is calculated from the year the previous owner acquired it (or 2001, whichever is later).

Talk to an NRI Tax Expert

Schedule a free consultation to discuss your capital gains tax situation.

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+91 9830699363

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info@svcassociate.in

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