New Delhi, Aug. 19 -- Starting construction of a new house before selling an existing residential property does not automatically rule out a Section 54 exemption.

However, the timing of construction, completion, and other conditions can determine whether the tax benefit is available. Here's what taxpayers need to know.

Saurabh Kumar, Managing Partner at SK Attorneys, explained that Section 54 is a tax-saving provision that helps reduce or avoid capital gains tax on the sale of a residential property, provided that it was held for more than 24 months. Capital gain is the profit earned when the property is sold for more than its purchase cost.

Varad Kale, Partner at V.V. Kale & Company, stated that Section 54 is available to an individua...