Long Term Capital Gains Reinvestment Calculator

Taxable Income

• Income Tax on Taxable Income may need to be paid as an advance tax periodically during the year to avoid interest under section 234*
• If there is no reinvestment or partial reinvestment, Long term capital gain tax @ 20% and applicable surcharge and education cess
• The LTCG calculation for such a class of asset is equivalent to 12.5% on the gain without indexation. However, the excess tax will be eliminated when 20% with indexation is taken into account. To qualify this exception, below criteria must be met.
  • The property must be acquired prior to and sold after July 23, 2024.
  • Applicable only when filing as Resident Individual or HUF
  • No loss from the 20% with indexation method would be considered when calculating the tax @ 12.5% or during carry forward losses.
  • Maximum tax relief from this method is up to an extent of the CG Tax @ 12.5%
• Starting from FY 2022-23, Gains from Crypto or equivalent assets cannot be re-invested to reduce tax burden.

• Refer additional resources to know about Cryptos (BitCoins) and to understand the impact on income from Cryptos

  • Trading Bitcoins? Top 7 things to know
  • How Bitcoins Taxed in India?
  • Crypto Tax Calculator

Re-Invest into Land

1. Reinvestment is applicable to Individual and HUF
2. Residential House Property should be constructed on the land purchased within 3 years from date of Transfer of old asset
3. Capital gain or amount of investment whichever is lower is exempted
4. Newly constructed House Property should not be sold before 3 years from the date of acquisition
5. Quantum of Exemption:
   a. If cost of new residential house >=Net Consideration of original asset, Entire capital Gain is exempt b. If Cost of new residential house < Net Consideration of Residential House, only Proportionate Capital Gain is exempt LTCG * Amount invested in new residential house/Net Consideration
6. You should not own more than 1 residential house on the date of transfer of original asset

Re-Invest into House

1. Reinvestment is applicable to Individual and HUF
2. Residential House Property should be purchased within 2 years from date of Transfer of old asset or 1 year before the date of transfer
3. Capital gain or amount of investment whichever is lower is exempted
4. New House Property should not be sold before 3 years from the date of acquisition
5. Quantum of Exemption:
   a. If cost of new residential house >=Net Consideration of original asset, Entire capital Gain is exempt b. If Cost of new residential house < Net Consideration of Residential House, only Proportionate Capital Gain is exempt LTCG * Amount invested in new residential house/Net Consideration
6. You should not own more than 1 residential house on the date of transfer of original asset

Re-Invest into Under Construction Property

1. Reinvestment is applicable to Individual and HUF
2. Residential House Property should be constructed within 3 years from date of Transfer of old asset
3. Capital gain or amount of investment whichever is lower is exempted
4. Newly constructed House Property should not be sold before 3 years from the date of acquisition
5. Quantum of Exemption:
   a. If cost of new residential house >=Net Consideration of original asset, Entire capital Gain is exempt b. If Cost of new residential house < Net Consideration of Residential House, only Proportionate Capital Gain is exempt LTCG * Amount invested in new residential house/Net Consideration
6. You should not own more than 1 residential house on the date of transfer of original asset

Re-Invest into multiple house properties

1. If gains are from the sale of a house property and the total gain amount is more than 2 Crores, reinvestment is possible either only in land or building or under construction property (any 1)
2. If gains are from the sale of a house property and the total gain amount is less than 2 Crores, reinvestment is possible in any 2 assets among land or building or under construction property but it can be availed only once in a lifetime.
3. If gains are from other than the sale of a house property, reinvestment is possible in any 1 asset among land or building or under construction property.

Re-Invest into Bonds

1. Reinvestment is applicable for any taxpayer (Individual/HUF/LLP/Firm/Pvt Ltd etc)
2. Investment in RECL or NHAI Power Finance Corporation Bonds (PFC) and Indian Railway Finance Corporation bonds (IRFC) or any specified bonds should be made within 6 months from the date of transfer of asset
3. Lock in period is 5 years
4. Maximum investment in NHAI Power Finance Corporation Bonds (PFC) and Indian Railway Finance Corporation bonds (IRFC) or RECL or any specified bonds is 50 lakhs *
5. Capital Gains or Amount invested in bonds which ever is lower is eligible for deduction

Note: NHAI bonds has been discontinued for Capital gain exemption u/s 54EC w.e.f 3rd September 2022.

Re-Invest into a Startup Company

1. Reinvestment is applicable to Individual and HUF
2. Company to be incorporated in the FY of transfer or next FY before due date u/s 139(1) + Net Consideration to be used for subscription of more than 25% of share capital before due date u/s 139(1) + New Plant and Machinery to be purchased within 1 year from date of subscription
3. The exemption under this would not be available for residential house properties transferred after 31/03/2022
4. Quantum of Exemption:
1. If cost of new plant and machinery >= Net Consideration of Residential House, Entire capital Gain is exempt
2. If Cost of new plant and machinery <= Net Consideration of Residential House, only Proportionate Capital Gain is exempt LTCG * Amount invested in new plant and machinery/Net Consideration

Re-Invest into a CGAS Account

1. Amount should be invested in CGAS before due date of filing return and it needs to be utilized within stipulated time i.e. 2, 3 years

Re-Invest into a CGAS Account

1. Amount should be invested in CGAS before due date of filing return and it needs to be utilized for purchase of new agriculture land within 2 years from date of transfer of old asset.

Re-Invest into a Urban Agriculture Land

1. Reinvestment is applicable for Individuals and HUF
2. New Agriculture Land purchased should be either Urban Agriculture land or Rural Agriculture Land
3. New Agriculture land should be purchased within 2 years from the date of sale of old agriculture land
4. Quantum of Exemption:
1. If cost of new agriculture land >= capital gains, entire capital gains is exempt
2. If cost of new agriculture land < capital gains, capital gains to the extent of cost of new agriculture land is exempt
5. New Agriculture land purchased should not be sold within 3 years from the date of acquisition