Capital gains tax when selling a flat or plot in Andhra Pradesh, Vizag and Vijayawada: Section 54, 54F and 54EC exemptions (seller's guide)
Short answer: selling a flat or plot in Vizag, Vijayawada or anywhere in Andhra Pradesh that you held long-term? Tax is on your gain, worked out on the Sub-Registrar's stamp duty value if that is more than 110% of your price. You may cut or remove the tax by putting the money into another house in India (Section 54 for a house sold, Section 54F for a plot sold) or into specified bonds within 6 months (Section 54EC, up to Rs 50 lakh), each with strict deadlines counted from the sale date. AP land pooling has its own listed exemption. These are the old 1961 Act numbers; confirm the new ones with a CA.
Tax law changed in 2026. Read this first. The department pages we read today say they contain "the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2026", and they use the old section numbers (54, 54F, 54EC). The Income-tax Act, 2025 now applies from tax year 2026-27 (our buyer TDS guide covers the new Form 141). The new Act's section numbers for these reliefs, and whether any condition below changed, are to verify: we could not open the Act text from our side today. Use this page to prepare questions, then confirm with a chartered accountant before you sell or reinvest.
Step 1: is your gain long-term or short-term?
The department's exemptions page says a long-term capital asset here means "an immovable property (land or building or both), held for more than 24 months immediately preceding the date of transfer". Its capital gain page words the same line as "24 months or more". Ask your CA which applies if you are right at the two-year mark.
All three reliefs on this page (54, 54F, 54EC) are for long-term gains only. A short-term gain is taxed at your normal slab rate, according to the same page.
Step 2: what counts as your sale price (the stamp duty value rule)
Section 50C, as the department summarises it: if your sale price is less than the stamp duty value, the "SDV is deemed the full value of consideration, unless it does not exceed 110% of the actual consideration." In plain words: if the value the Andhra Pradesh Sub-Registrar adopted for stamp duty is more than 110% of the price in your deed, tax is worked out on that stamp duty value, not on your price.
- Check that value before you agree the price. See our market value check guide, so you know the government figure for your flat or plot.
- Agreement date option: "SDV on the agreement date can be taken if consideration (wholly/partly) was received by account payee cheque/draft, ECS, or other prescribed electronic mode on or before the agreement date." Take the advance by bank transfer, not cash, and keep the bank statement.
- If you think the stamp duty value is higher than the real market value: the page says the Assessing Officer may refer it to a Valuation Officer, and "the lower of the SDV or Valuation Officer's value will apply".
Step 3: what you can subtract
- Cost of acquisition: what you paid. For inherited or gifted property, "the cost to the previous owner is deemed to be the cost to the assesse." For property bought before 1 April 2001, you may use the fair market value on 1 April 2001, but not above the stamp duty value on that date.
- Cost of improvement: capital spending "incurred on or after 01-04-2001".
- Transfer expenses: "brokerage, commission, stamp duty, legal fees, etc." Keep every receipt.
Step 4: the rate (confirm before you rely on it)
The department's capital gain page says long-term gains are "Taxable at 12.5% without indexation. However, resident individuals and HUFs can opt for a 20% rate with indexation for land, a building, or both acquired before July 23, 2024". Its Cost Inflation Index table ends at 2025-26 (376). One block lower on that same page reads "LTCG are taxed at 5%", which conflicts with the 12.5% stated twice elsewhere, so treat the rate as to confirm with your CA, along with surcharge, cess and any change under the 2025 Act.
Step 5: which exemption fits what you sold
| You sold | Relief (old section no.) | Reinvest in | Who can claim | Limit, as the department states it |
|---|---|---|---|---|
| A residential house or flat (long-term) | Section 54 | A residential house in India: buy 1 year before or 2 years after the sale, or build within 3 years | Individual or HUF | Lower of the gain, Rs 10 crore, or the amount invested plus the amount deposited in the Capital Gains Account Scheme. Two houses only if the gain is not more than Rs 2 crore, "once in a lifetime". |
| A plot, or any long-term asset other than a house | Section 54F | One residential house in India, same time limits. The net sale price must be invested, not just the gain. | Individual or HUF | Exempt part = investment x gain / net sale price, with the investment counted up to Rs 10 crore. May be denied if you already own more than one house on the sale date (other than the new one). |
| Land or building or both (long-term) | Section 54EC | Specified bonds within 6 months: the department lists NHAI, REC, HUDCO, IREDA "or other notified bonds" | Any assessee | Up to Rs 50 lakh, "during the financial year in which immovable property is transferred and in subsequent financial year". 5-year lock-in. |
Count your deadlines from the registration date
Write your sale (transfer) date here: ____ / ____ / ______. Every limit below counts from it.
| When | What has to be done | Relief |
|---|---|---|
| Up to 1 year before the sale | A house bought in this window can count | 54 / 54F |
| Within 6 months after | Buy the specified bonds | 54EC |
| By your return due date | Money not yet used for the new house goes into the Capital Gains Account Scheme with an authorised bank ("no CGAS deposit is required" for 54EC) | 54 / 54F |
| Within 2 years after | Purchase of the new house completed | 54 / 54F |
| Within 3 years after | Construction of the new house completed; unused scheme money becomes taxable when the limit expires | 54 / 54F |
| 3 years after buying the new house (5 years for bonds) | Don't sell it, convert it into money, or use it "as security for a loan" before this, or the exemption is withdrawn | 54 / 54F / 54EC |
You must still file a return: the department's threshold table says a return is needed if your income before claiming these exemptions exceeds the basic limit. Capital Gains Account Scheme forms, banks and withdrawal steps are to verify with your bank.
Andhra Pradesh land pooling
The department's capital gain page lists "Section 10(37A): Andhra Pradesh land pooling schemes" among capital gains exempt under section 10. We have not read its conditions on an official page, so whether your pooled land qualifies is to verify with a CA.
Selling farm land near Vizag, Vijayawada or Guntur?
"An agricultural land situated in any rural area in India is not treated as capital asset." Land inside a municipality or cantonment with population of 10,000 or more, or within 2 km, 6 km or 8 km of one (depending on its population), is treated as a capital asset. The distance and population test decides it, so ask your CA to check it.
Seller's worksheet to take to your CA
- Purchase deed or inheritance papers, with the date you (or the previous owner) acquired it
- Your sale agreement date, how the advance was paid, and the registration date
- The Andhra Pradesh market value adopted by the Sub-Registrar, from the registered document
- Receipts for improvements after 1 April 2001, brokerage, legal fees and stamp duty you paid
- Your plan: new house (bought or built), bonds, or both, with dates
- How many houses you own on the sale date (matters for 54F)
- The buyer's TDS certificate, to match against your tax records
Related guides
- Check the government market value of your property
- TDS the buyer deducts (Form 141, was 26QB)
- Selling as an NRI: the buyer's TDS side
- Development agreement stamp duty and registration
- Stamp duty and registration charges on a sale deed
Selling in Hyderabad? See the Telangana guide.
Not tax or legal advice; confirm with a chartered accountant. This page summarises public income tax department pages read on 22 Oct 2026. Tax law, rates and section numbers change (the Income-tax Act, 2025 now applies), and your facts decide the answer. Not legal advice.
A free sample from our Andhra Pradesh property do-it-yourself pack for NRIs: which portal to open, in what order, what to ask for, and what to keep on file.
Get it free (instant download)FAQ
Do I pay capital gains tax when I sell a flat in Vizag or Vijayawada?
If you sell at a gain, yes, unless an exemption applies. Held more than 24 months it is long-term; the department's page gives 12.5% without indexation, with a 20% with-indexation option for resident individuals and HUFs on property acquired before 23 July 2024. Confirm the rate with a CA, as the law changed in 2026.
Is tax worked out on my sale price or the AP market value?
On your price, unless the stamp duty value adopted at registration is more than 110% of it. Then the stamp duty value is treated as the sale price (section 50C, as the department summarises it).
Is land given in Andhra Pradesh land pooling taxed?
The department lists section 10(37A), Andhra Pradesh land pooling schemes, among capital gains exempt under section 10. We have not read its conditions, so check with a CA whether yours qualifies.
I sold a plot, not a house. Can I use Section 54?
Section 54 is for a residential house sold. For a plot, the department points to Section 54F (invest the net sale price in one house in India) or Section 54EC bonds within 6 months. Check which fits with your CA.
Do these section numbers still apply in 2026?
The department pages we read describe the 1961 Act as amended by the Finance Act, 2026. The Income-tax Act, 2025 applies from tax year 2026-27 and renumbers sections. The new numbers are to verify with a CA.
Official sources
- Income Tax Department: Exemptions from Capital Gains
- Income Tax Department: Capital Gain
- Income Tax Department: Threshold limits
- Income Tax Department: Income-tax Act 2025
Not legal advice. We don't check properties or certify ads. A lawyer must confirm title, and the Authority's own notices override anything on this page.