How to calculate on Long Term Capital Gains on Property when 2 properties were sold

1. As such either option will be available for each property. Need to check any notification or clarification released in future from ITD.
2.  No limit.

I received another reply for my query which is contradicting to your reply.

In your scenario, the Long Term Capital Gains (LTCG) calculation for property sales depends on the tax options available: 20% with indexation or 12.5% without indexation, as per Budget 2024. You are not allowed to mix the calculation methods for different properties. If you sold two properties in the same financial year, both gains must be calculated using the same tax method—either with or without indexation.

Attached Screenshot.

It may be his/her opinion. What stated above is my opinion base on the following facts.

1. Department has not released any clarification or notification restricting the option of arriving the cost of acquisition for all the assetes sold or transfer in same year only based on one method.
2.  In general it is the practise to declare the tax liability which is favourable to assesses whenever more than one options are eligible; which all the courts have supported.

 Final test would be at the time of filing return!!!

Sir, 

I need a small clarification on the above issue. Can we avail exemption under section 54 for both the properties separately during the financial year or only one exemption applicable to any number of properties transferred during the year.

You can get exemption on both the properties sold in the same year....

PLEASE READ GAZZATE finance-no.2-act-2024  ON IT PORTAL Amendment of
section 112. 30. In section 112 of the Income-tax Act, in sub-section (1), for the
clauses (a), (b), (c), (d) and the first proviso, the following shall be substituted and shall
be deemed to have been substituted with effect from the 23rd day of July, 2024,
namely:—
“(a) in the case of an individual or a Hindu undivided family, being a
resident,—
(i) the amount of income-tax payable on the total income as
reduced by the amount of such long-term capital gains, had the total
income as so reduced been his total income; and
(ii) the amount of income-tax calculated on such long-term capital
gains,––
(A) at the rate of twenty per cent. for any transfer which takes
place before the 23rd day of July, 2024; and
(B) at the rate of twelve and one-half per cent. for any transfer
which takes place on or after the 23rd day of July, 2024:

IT IS UNDERSTOOD THAT WHERE 20% TAX MEANS INDEXSATION ALLOWED. 

Let the final amendment be declared::

On 7 August 2024, the Finance Minister, before moving the Bill for approval in the Lok Sabha, introduced amendments to provide relief from excess tax liability for resident individuals and Hindu Undivided Families (HUFs). This relief, however, does not extend to Limited Liability Partnerships (LLPs), companies, etc.

The proposal aims to restore the benefit of indexation when computing tax payable on long-term capital gains from the transfer of land or buildings or both acquired before 23 July 2024. According to the proposal, the tax payable by individual or HUF sellers would be the lower of the following

• (a) 12.5% of the capital gains without indexation; or
• (b) 20% of capital gains after considering indexation.

Notification awaited....

https://economictimes.indiatimes.com/wealth/real-estate/capital-gains-tax-calculation-changes-to-bring-big-relief-for-homeowners-12-5-ltcg-tax-or-20-tax-with-indexation-which-will-reduce-tax-outgo/articleshow/112344642.cms

This gazzete is dated 16th August 2024, this just say  date 23rd july before and after and tax rates, we have to wait till this 1961 act finally get amended for filling returns of 25-26

That was not clarified by your post earlier, as such it might creat confusion in the mind of queriest.

So, the clarification.

Under Section 54EC, can I claim exemption for both the LTCGs @ 50 lacs for each property.

No. you can get exemption upto Rs. 50 lakhs in aggregate.

Each property sale is calculated and reported SEPARATELY in Schedule CG of ITR-2. You do not combine the gains.

For each property:
1. Calculate LTCG = Sale consideration minus indexed cost of acquisition minus indexed cost of improvement minus selling expenses
2. Apply indexation using the Cost Inflation Index (CII) for the year of purchase and the year of sale
3. Post July 23, 2024: if either property was purchased before July 23, 2024, you can choose EITHER 12.5% without indexation OR 20% with indexation. Pick the lower of the two for each property independently.

For Section 54 exemption (reinvestment in residential house):
Section 54 exemption is available for each LTCG arising from a residential property sale. So if both properties were residential, you can potentially claim exemption on BOTH gains by reinvesting in a new residential house. However, the investment in the new house must be made within 1 year before or 2 years after each sale date.

Important: if you are claiming Section 54 exemption for both properties, the new house must cover the exemption amount from BOTH sales. You cannot use the same Rs X reinvestment to offset gains from two different sales unless the reinvestment amount covers both.

For Section 54EC (capital gains bonds), each sale has its own 6-month window from the date of transfer to invest in NHAI/REC bonds, with a per-year limit of Rs 50 lakh per taxpayer (not per sale).

If either of the properties was under-construction when you originally purchased it, GST on that original purchase may affect your cost of acquisition calculation. This [guide on GST for under-construction property](https://taxgarden.in/blog/gst-on-real-estate-under-construction-property-india-2026) explains how GST paid to the builder is treated in cost computation.