# Section 54 Exemption Calculator: Save Tax on House Sale > Section 54 exemption calculator: see how much long-term capital gain you can exempt by buying a new house (54 or 54F) or 54EC bonds, and the tax left. Source: https://trykosh.com/tools/section-54-exemption-calculator Free tool - Capital gains # Section 54 and 54F exemption calculator Find out how much of your long-term capital gain you can shelter by buying a new home under section 54 or 54F, plus 54EC bonds, and how much tax is left to pay. Rules checked 25 October 2026Free - no sign-upRuns in your browser Tax-exempt capital gain INR 40,00,000 Saves about INR 5,20,000 in tax - taxable gain left INR 20,00,000 Your gain is up to INR 2 crore, so you may split it across two houses, but only once in your life. Exempt under 54**INR 40,00,000** Exempt under 54EC**INR 0** Tax still due**INR 2,60,000** Exempt **INR 40,00,000**Taxable **INR 20,00,000** Long-term capital gain INR 60,00,000 New house + CGAS deposit (counted up to INR 10 crore) INR 40,00,000 54 exemption = lower of gain and amount invested INR 40,00,000 54EC bonds INR 0 Taxable long-term gain INR 20,00,000 Tax at 12.5% + cess INR 2,60,000 To exempt the whole gain under 54 you'd need to invest the full gain: INR 60,00,000. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh keeps a running estimate of the tax on your gains, so March holds no surprises. [Start free](/signup?via=tool-section-54-exemption-calculator) ## How the section 54 exemption calculator works Section 54 applies when you sell a residential house held for more than 24 months and buy or build another residential house in India. The exemption is the lower of the long-term gain and the amount you invest in the new house. If the gain is INR 60 lakh and you put INR 40 lakh into a new flat, INR 40 lakh is exempt and INR 20 lakh is taxed. Section 54F applies when the asset sold is anything other than a house: a plot, shares, gold, or a commercial property. Here you must invest the net sale consideration, not just the gain. If you invest only part of it, the exemption is proportionate: gain x amount invested / net sale consideration. Since FY 2023-24, the investment counted under either section is capped at INR 10 crore. If you haven't bought or built by the ITR due date, deposit the unspent amount in the Capital Gains Account Scheme at a bank to keep the claim; it counts as invested. Section 54EC is separate: gains on land or buildings can be put into specified bonds (such as REC or PFC) within 6 months of the sale, up to INR 50 lakh, with a 5-year lock-in. The calculator applies the house exemption first and then the bonds to whatever gain remains. 54: exempt = min(gain, invested, INR 10 crore) - 54F: exempt = gain x min(invested, INR 10 crore) / net sale 54EC min(remaining gain, bonds, INR 50 lakh) ## Worked example: Kavita sells an inherited plot and buys a flat Kavita sells a plot for a net INR 90 lakh, making a INR 50 lakh long-term gain. She doesn't own a house, so she uses section 54F and puts INR 60 lakh into a flat in Chennai. Her exemption is INR 50 lakh x 60 / 90, about INR 33.33 lakh. She also buys INR 10 lakh of 54EC bonds. Only INR 6.67 lakh stays taxable, costing INR 86,667 at 12.5% with cess instead of INR 6.5 lakh. Tax-exempt capital gain INR 43,33,333 Saves about INR 5,63,333 in tax - taxable gain left INR 6,66,667 54F needs you to own no more than one house (besides the new one) on the date of sale, and not to buy another within 2 years. Exempt under 54F**INR 33,33,333** Exempt under 54EC**INR 10,00,000** Tax still due**INR 86,667** Exempt **INR 43,33,333**Taxable **INR 6,66,667** Long-term capital gain INR 50,00,000 Net sale consideration INR 90,00,000 New house + CGAS deposit (counted up to INR 10 crore) INR 60,00,000 54F exemption = gain x invested / net sale INR 33,33,333 54EC bonds INR 10,00,000 Taxable long-term gain INR 6,66,667 Tax at 12.5% + cess INR 86,667 To exempt the whole gain under 54F you'd need to invest the full net sale value: INR 90,00,000. [Load this example into the calculator ->](?mode=54F<cg=5000000&invested=6000000&bonds=1000000#calculator) ## Good to know - Timelines: buy the new house 1 year before or 2 years after the sale, or finish construction within 3 years. 54EC bonds must be bought within 6 months. - Sell the new house within 3 years and the exemption is reversed: the exempt gain is taxed in the year you sell it. - Section 54 allows two houses instead of one if the gain is up to INR 2 crore, but only once in your lifetime. - The new house must be in India. A house abroad doesn't qualify under either section. - Under the Income-tax Act, 2025 these exemptions carry over with the same conditions; most people still search for them by their old section numbers. ## Frequently asked questions What is the difference between section 54 and 54F? Section 54 is for gains from selling a residential house; you need to reinvest only the capital gain. Section 54F is for gains from selling any other long-term asset; you need to reinvest the full net sale consideration to exempt the whole gain, otherwise the exemption is proportionate. Is there a limit on section 54 exemption? Yes. From FY 2023-24 the amount invested in the new house is counted only up to INR 10 crore under both 54 and 54F. Gains above what that covers are taxable. What is the Capital Gains Account Scheme? A special deposit at authorised banks for gains you plan to reinvest but haven't yet. Deposit before the ITR due date, then withdraw only to buy or build the house within the deadline. Unused money becomes taxable when the period ends. Can I claim both section 54 and 54EC? Yes, on the same gain from a house. You might put part into a new home under 54 and up to INR 50 lakh into 54EC bonds. Together they can't exceed the gain itself. Can I claim section 54 on an under-construction flat? Yes, if construction is completed within 3 years of the sale. Payments made to the builder within the deadlines count as investment. Possession delays beyond 3 years can put the claim at risk. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.