Fin Spyne CAPITAL GAINS & PROPERTY ADVISORY Real Estate & Capital Gains Tax Planning Guide A guide to calculating Long-Term Capital Gains (LTCG), navigating Section 50C circle rate adjustments, and utilizing Sections 54 and 54EC exemptions. Essential Insight: Selling immovable property below the State Circle Rate triggers mandatory deemed income additions under Section 50C for the seller and Section 56(2)(x) for the buyer. Read detailed guides at FinSpyne Capital Gains ITR 1. The Post-Budget Real Estate LTCG Framework Following recent Finance Act modi fi cations, property sellers have critical calculation options depending on acquisition date: Acquisition Period Available Tax Calculation Modes Strategic Impact Acquired Before 23 July 2024 Choice between 12.5% without indexation OR 20% with indexation bene fi ts Sellers can opt for the regime yielding lower actual tax out fl ow. FinSpyne CAs run comparative models. Acquired On or After 23 July 2024 Flat 12.5% without indexation for long-term assets held over 24 months. Simpli fi es tax computations but requires disciplined tracking of improvement costs. 2. Key Exemption Mechanisms: Section 54, 54EC & 54F Section 54: Residential Reinvestment Exemption on residential property sale by reinvesting in one residential house within 1 year before, 2 years after, or constructing within 3 years (capped at ₹ 10 Crores). Section 54EC: Capital Gain Bonds Investment in noti fi ed infrastructure bonds (NHAI, REC, PFC, IRFC) up to ₹ 50 Lakhs within 6 months of transfer, locked for 5 years. Section 54F: Non-Residential Sales Exemption available upon selling commercial plots or shares, provided net consideration is reinvested in a residential home. Capital Gains Account Scheme (CGAS) If funds are not re-invested before the ITR due date (July 31st), money must be deposited in a CGAS bank account to protect eligibility. FinSpyne Capital Gains Series • https://www. fi nspyne.com/ Page 1 of 2 Fin Spyne NRI PROPERTY SALES & CA CERTIFICATION 3. The NRI Property Seller Trap: Form 13 & Section 195 TDS Non-Resident Indians selling property in India face excessive withholding tax (up to 20% to 30% plus surcharge on gross sale value , not actual net capital gains). This locks signi fi cant capital in government coffers for over a year. Solution: Section 197 / Form 13 NRIs can apply for a Lower/Nil TDS Certi fi cate through an authorized Chartered Accountant before executing the registered sale deed. Repatriation via Form 15CA/CB After sale proceeds are deposited in an NRO account, a CA conducts a tax clearance audit and issues Form 15CB for overseas transfer. 4. How FinSpyne Solves Capital Gains & Property Compliance FinSpyne pairs property sellers with quali fi ed Chartered Accountants to handle complete end-to-end execution: • Indexation vs. 12.5% Mathematical Audit: Running comparative scenarios with improvement bills to identify the lowest lawful tax liability. • CGAS Banking Compliance: Preparing CA computation sheets to open and maintain designated Capital Gains Accounts. • CA Certi fi ed ITR-2 / ITR-3 Filing: Reporting all real estate schedules and delivering a signed CA Certi fi cate with your fi led return. Selling a house, land, or commercial property? Do not overpay capital gains tax. Work with FinSpyne ’ s chartered accountants for capital gains computation, exemption planning, and ITR certi fi cation. Learn more at FinSpyne.com or WhatsApp +91 93159 15557. FinSpyne Compliance Partner • https://www. fi nspyne.com/ Page 2 of 2