Tax Rules 2025-26: Why Selling Property After April 1 Could Leave You Richer

Property owners looking to dispose of their assets stands to gain from waiting until after April 1, 2025. The postponement in property sale allows sellers more time for tax-saving investments and efficient financial planning.

Selling your property before March 31, 2025, results in capital gains tax liability for FY 2024-25. However, selling on or after April 1 moves the tax burden to FY 2025-26, offering an additional year for financial planning.

This also allows property sellers to spread advance tax payments over four installments instead of paying a lump sum by March 31.

Additionally, sale proceeds can be deposited into a Capital Gains Account Scheme (CGAS) by July 31, 2026, extending the timeline for reinvestment decisions.

Above all, sellers can reinvest gains in residential property under Section 54 of the Income Tax Act, either by purchasing a new property within two years or constructing a new one within three years.

Alternatively, Section 54EC allows investment in specified bonds, such as those issued by the National Highways Authority of India (NHAI) or Rural Electrification Corporation (REC), offering tax exemptions with a five-year lock-in period.