💰 Tax Savings · Capital-gains exemptions
Sell any asset, buy a house, pay no capital-gains tax — Section 86 (old 54F)
✍️ EaseValue Advisors · Updated 18 Jul 2026 · FY 2025-26
In short
Made a long-term gain on any asset other than a house (plot, gold, shares)? Reinvest the whole net sale value in one residential house and the gain is exempt — Section 86, Income-tax Act 2025 (old 54F).
The exemption
- Buy a house 1 year before or 2 years after the sale, or construct within 3 years.
- Reinvest the whole net sale consideration for full exemption (proportionate if part).
- Cap of ₹10 crore.
Conditions
- You must not own more than one other residential house on the sale date.
- Don't sell the new house for 3 years, or the exemption reverses.
Example: sell shares for ₹80 lakh (₹50 lakh gain); buy a house for ₹80 lakh → the whole ₹50 lakh gain is exempt.
Who it helps
Anyone with a large non-property gain willing to buy a home.
Getting it right
- Reinvest the whole net sale consideration (not just the gain) for full exemption — proportionate if you invest part.
- Park unused amounts in a Capital Gains Account before the return due date.
- You must not own more than one other house on the sale date; don't sell the new one for 3 years.
The law behind it
Section 86 (old 54F) Section 82 (old 54) Section 85 (old 54EC)
General information for FY 2025-26 (AY 2026-27), not advice on your specific case. Limits, rates and conditions
change with each Finance Act and depend on your facts — confirm before acting. © EaseValue Advisors LLP.
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