Many taxpayers think once the financial year is over, there’s no way left to save taxes. But that’s not always true. tax platform TaxBuddy, gave an example as to how timely planning can make a huge difference.
Ramesh, a property owner from Hyderabad, sold his house in May 2024 and earned a long-term capital gain of Rs 50 lakh. Like many others, he thought he had no option but to pay tax of over Rs 10 lakh when filing his return.
TaxBuddy, in its LinkedIn post, shared, “Ramesh was about to pay Rs 10,40,000 in capital gains tax. He thought: Financial year is over; I can’t save taxes. We reduced his tax liability to 0.”
His income tax return is due on September 15, 2025, but he was still looking for the right property to reinvest in. This is where the Capital Gains Account Scheme (CGAS) came to his rescue.
According to the platform, “Instead of rushing into a random property, we advised him to deposit his gains into the CGAS before the due date. By doing so, he locked in his exemption.”
This step gave him more time, two years to buy a new property or three years to construct one, without losing the tax benefit. By using this option, Ramesh successfully reduced his tax liability from Rs 10.40 lakh to zero.
TaxBuddy explained, “Section 54 and 54F of the Income Tax Act allow exemption if capital gains are reinvested. When reinvestment is not immediate, depositing the amount in the CGAS before filing your return ensures the exemption is protected.”
For taxpayers, the reminder is clear: September 15, 2025 is not only the last day to file ITR but also the last chance to secure capital gains exemption if reinvestment has not yet been made.
This case highlights that with proper planning, taxpayers do not have to make hasty decisions. Instead, they can legally save lakhs in taxes while buying themselves more time to make the right investment choice.
