site logo

ndsadvisors.com

Reinvestment Exemptions · ICAI Registered Firm

CG Tax Exemptions on Reinvestment reinvest, comply, and pay no tax — legally.

Detailed advisory on capital gains exemptions under Sections 54, 54B, 54D, 54EC, 54F, and 54GB — reinvestment in residential property, NHAI / REC / PFC bonds, agricultural land, and startup equity to lawfully shelter long-term gains.

The Income-tax Act offers a family of exemptions that allow taxpayers to defer or eliminate capital gains tax by reinvesting the proceeds in specified assets. Section 54 covers residential property reinvestment, Section 54EC covers infrastructure bonds, Section 54F covers gains from non-residential assets, and Section 54B covers agricultural land.

Each exemption has strict conditions — qualifying asset, time window for reinvestment, lock-in period, and a Capital Gains Account Scheme route for amounts not immediately reinvested. Missing any one condition can disqualify the entire exemption and trigger tax at the full LTCG rate.

We help clients evaluate which exemption fits their case, structure the reinvestment within time, deposit unutilised gains into the CGAS before the ITR due date, and report the exemption correctly in Schedule CG. Post-claim, we also handle the lock-in tracking to avoid reversal of exemption in later years.

Our CG Tax Exemptions on Reinvestment Services

01

Section 54 — House Property

Exemption on LTCG from residential house reinvested in another residential property.

02

Section 54B — Agricultural Land

Exemption on sale of agricultural land reinvested in new agricultural land.

03

Section 54D — Industrial Land

Exemption on compulsory acquisition of industrial land or building.

04

Section 54EC — Bonds

Exemption on LTCG invested in NHAI / REC / PFC bonds within 6 months.

05

Section 54F — General Assets

Exemption on sale of any long-term asset reinvested in residential house.

06

Section 54GB — Startup Equity

Exemption on sale of residential property reinvested in eligible startup.

07

CGAS Deposit

Capital Gains Account Scheme deposit for unutilised reinvestment amounts.

08

Lock-in Tracking

Tracking of three-year lock-in and reversal compliance.

Our Approach

1

Gain Mapping

Gains analysed and matched to applicable exemption section.

2

Eligibility Check

Asset, time window, and limit conditions verified.

3

Reinvestment Plan

Reinvestment in property / bonds / startup planned within statutory window.

4

CGAS / Documentation

Unutilised amount parked in CGAS; receipts and registry retained.

5

ITR & Tracking

Schedule CG exemption claimed; lock-in tracked year-on-year.

Why It Matters

Section 54 / 54B / 54D covered
Section 54EC bond exemption claimed
Section 54F for general asset sale
Section 54GB for startup reinvestment
CGAS deposit handled in time
Lock-in compliance tracked
Documentation retained for scrutiny
Reversal exposure flagged early

Frequently Asked Questions

Exemption on long-term capital gains from sale of residential house reinvested in another residential house.

₹50 lakh per financial year for investment in specified bonds.

Two years for purchase or three years for construction of the new property.

A scheme to park unutilised capital gains in a designated bank account before the ITR due date.

Yes, property purchased one year before sale also qualifies under Section 54.

Want to Save Tax on Your Capital Gains?

Get your reinvestment exemption planned correctly — Sections 54, 54EC, 54F, and CGAS, all sequenced within statutory timelines.

Plan My CG Exemption or call +91 9819 000 511