New Delhi, June 6 -- Selling a property can result in a significant tax liability if the transaction generates capital gains. However, the income tax law provides certain options through which taxpayers can defer this tax burden or avoid it altogether, provided they meet specified conditions.

One such income tax provision allows taxpayers to claim an exemption from long-term capital gains arising from the sale of a residential house property, but it's only applicable if such gains are reinvested in another residential property. Understanding these provisions can help property sellers plan their finances efficiently and make informed decisions after a sale.

Under Section 54 of the Income Tax Act, a taxpayer can avoid paying taxes on proc...