New Delhi, July 1 -- Capital gains tax often comes as an unpleasant surprise during tax filing. But with timely planning, there are perfectly legal ways to reduce your tax liability.

"The Income Tax Act provides several exemptions and strategies that help taxpayers minimize their tax liability while remaining fully compliant with the law," says CA Ruchika Bhagat, MD, Neeraj Bhagat & Co.

Here are look at the different routes how you can legally save tax on capital gains:

Claiming exemptions under specific sections: One of the most common methods is claiming exemptions under specific sections. If you earn long-term capital gains from the sale of a residential property, you may claim exemption by purchasing or constructing another residen...