Sell Smart — Reduce Capital Gains Tax Legally Before You Complete the Transaction
Capital gains arise when you sell or transfer a capital asset — property, shares, mutual funds, gold, bonds, jewellery — for a price higher than its cost. Capital gains are classified as Short-Term Capital Gains (STCG) or Long-Term Capital Gains (LTCG) depending on the holding period, and taxed at different rates. STCG on equity/MF: 20% (post Finance Act 2024), LTCG on equity/MF: 12.5% above ₹1.25 lakhs exemption. Property LTCG: 20% with indexation (or 12.5% without Indexation). Capital gains tax can be a substantial liability — but with proper pre-transaction planning, it can be significantly and legally reduced.
Capital gains tax planning involves: correct classification of gains (STCG/LTCG), indexation benefit application for property, systematic utilisation of exemptions under Sections 54, 54B, 54EC, 54F [new-sections 82, 83, 85, 86] (reinvestment in new house, agricultural land, NHAI/REC bonds, or another residential property), tax-loss harvesting from portfolio (booking losses to set off gains), and timing transactions across financial years to manage annual tax liability. Pre-sale planning — done even 6–12 months before a transaction — can save lakhs in tax.
Who Needs This?
Key Exemptions We Advise On
Pricing
Capital Gains Advisory
₹1,999 per transaction
Pre-transaction planning consultation
Ideal for: Individuals selling property, shares, or other assets wanting pre-sale tax advice
Portfolio Capital Gains Management
₹2,999/year
For investors with active trading/investment portfolios
Ideal for: Active investors in equity, mutual funds, or real estate
Frequently Asked Questions
What is the holding period for long-term capital gains on property?
For immovable property: 24 months or more = long-term (LTCG at 12.5% without indexation or 20% with indexation — whichever is lower, as per Finance Act 2024 provisions). For equity shares/equity MF: 12 months or more = long-term (LTCG at 12.5% above ₹1.25 lakh threshold).
Can I claim the Section 54 [new section 82] exemption if I already own another house?
You can claim Section 54 [new-82] even if you own multiple houses — but only one new residential property can be purchased with the capital gains, and it must be purchased within 1 year before or 2 years after the sale (or constructed within 3 years). The exemption is capped at ₹10 crores from FY 2023-24.
What happens if I don't reinvest the gains within the deadline?
You can deposit the unutilised capital gains in a Capital Gains Account Scheme (CGAS) with a bank before the ITR due date — this "holds" the exemption until you complete the reinvestment within the prescribed period. VITTAX advises on CGAS deposits and helps you comply within the timeline.
⚡ Key Exemptions
Talk to a CA Today → We compute your gains, identify exemptions, and help you save lakhs legally