New Delhi, Oct. 22 -- If you have sold a house and reinvested the sale proceeds in a new residential property within the prescribed timeline, you may still face capital gains tax if you fail to meet certain conditions. While reinvesting in a new house can help you claim tax exemption, taxpayers must understand the rules and timelines to avoid losing the benefit.

Section 54 of the Income-tax Act, 1961, allows individuals and Hindu Undivided Families (HUFs) to claim an exemption from long-term capital gains (LTCG) on the sale of a residential house by investing in another residential property in India.

Under the Income-tax Act, 2025, this provision has been renumbered as Section 82, with the corresponding conditions unchanged.

To claim t...