You have to calculate capital gains as per Index formula that is date of purchase, sale and amounts. 

Whatever capital gain amount comes that amount need to reinvest in property or in government bonds NABARD.

The capital gains will be calculated separately as the way of proceeds received from different individuals. It will not be combined. It has to be calculated and invested differently by individuals

We are here to guide you and not to teach you like school or colleges.

That's why I said that as per the capital gains calculate the property values.

No matter how many properties are you selling and purchasing, the cost and amount is important.

Section 54 requires you to invest only the indexed long-term capital gains, whereasSection 54F is available if the net consideration of such assets is invested. ... Likewise, for the purchase of a house, the period specified is one year before or two years after the sale of the asset/s.

The exemption under Section 54 is available on long-term Capital Gain on sale of a House Property.

Exemption under Section 54F is available on long-term Capital Gain on sale of any asset other than a House Property.

For long terms capital gains:

20% with indexation benefit and 10% without indexation benefit Exemptions available if proceeds invested in residential house or Section 54EC bonds. Indexation benchmark changed to 2001 from 1981-82 effective 2017-18.

For short term capital gains:

Marginal tax rate – (upto 30%), 3% cess and upto 15% surcharge;

Short Term Capital Gain Tax Calculator

Illustration of Short Term Capital Gains: Mr A sold his property January 2016 at Rs. 50 lakh, which he had purchased in December 2014 for Rs. 30 lakh. As per his income, Mr. A falls in the highest tax slab of 30%. Mr. A spent around Rs. 2 lakh on house improvement during the period and also paid a brokerage of 0.5 per cent of the sale price of the house at the time of selling the house. What will be his taxable capital gains and what is the tax amount payable by him?

In this illustration, the gain achieved on this property in its 2 year holding period will be considered as short term capital gain and will be taxed as short term capital gains tax, as per his applicable income tax slab. In this case, as shown below, Mr. A's short term capital gains will be Rs. 17.75 lakhs and he is liable to pay a tax of Rs. 5,32,500 on this.

Long Term Capital Gain Tax

When you sell your property that is owned by you for more than three years, any gain arising from such sale will be considered as long term capital gain. Long term capital gain is calculated as the difference between net sales consideration and indexed cost of property. The benefit of indexation is allowed to set off the impact of inflation from the gains made on sale of the property so that the actual gains on property will be taxed. This is based on the logic that value of money decreases constantly because of inflation and hence, it is unfair to tax a long term property holder for the nominal gains accruing to him only because of inflation.

Key points to remember:

• Current Long Term Capital Gains tax rate is 20%
• You are allowed to adjust your sale consideration for any brokerage, commission you had paid at the time of property sale
• You are allowed to deduct any expenditure on construction and home improvement incurred during the period you held/owned the asset. Similar to the indexation benefit available on the purchase price, any house improvement expenditure is also allowed to be adjusted as per the Cost Inflation Index published by Reserve Bank of India.
• You can get your loan term capital gains tax reduced/exempted u/s 54 i.e. by investing the gain in residential property or buying capital gains bonds issued by REC or NHAI.

Cost Inflation Index and its Impact on Capital Gains

The value of money decreases constantly because of inflation. Thus, income tax department in India allows indexing the cost price of property, so as it to adjust it for inflation related price appreciation. The cost inflation index is upgraded by Reserve Bank of India in every financial year. 

 Under section 54, sell a residential property and invest the gains to buy a new residential property and claim exemption on capital gains tax.

Under section 54, you can claim exemption on capital gains tax exemption, if you invest full or part of your sale proceeds of a residential property in India in another residential property in India. Rules for exemption are as follows:

• Exemption is available to individuals and HUFs and is available for one residential property
• The capital gains from sale of a residential property can be set off against the purchase of new residential house. The property sold and purchase should be in India
• The new residential house can be bought either one year before the sale of old house or within two years from the date of sale of the previous property. In case you plan to construct a house, the construction of the house should be completed within 3 years from the date of sale of the previous property
• Once you have purchased or constructed a new house, you cannot sell it in less than 3 years. If you sell it before 3 years, you will not get the benefit of capital gain exemption and your sale proceeds will be taxable. These 3 years are calculated from the date of acquisition or completion of work of the new house.
• The amount of exemption claimed is lower than the amount of capital gains or the cost of new house purchased.

2.Under section 54 F, sell any asset other than a residential property and claim capital gains tax exemption by purchasing a residential house

Rules for exemption under Section 54 F are as follows:

• Exemption available to individuals and HUFs
• The new residential house can be bought either one year before the sale of old house or within two years from the date of sale of the previous property. In case of construction of a house, the construction of the house should be completed within 3 years from the date of sale of the previous asset
• Exemption available only if the taxpayer does not own more than one residential house on the date of transfer of such asset other than the one that he has bought to claim deduction under Section 54 F
• If the whole sale consideration is not invested and only a part sale consideration is invested in the purchase of new property, the amount of exemption shall be provided proportionately i.e. Amount Exempt= Capital Gain X Amount Invested/Net Sale Consideration

3.Under Section 54 EC, sell a long term capital asset and get capital gains tax exemption by investing in 54EC Capital Gain Bonds

This section comes in handy for tax payers who have sold their assets and are liable to pay long term capital gains tax, but are unable to take benefit from the rules under section 54 by buying another residential property. These tax payers can save tax by investing their gain in Capital Gains bonds. Rules for exemption are as follows:

• You have to invest the "capital gained" money into these bonds within six months of selling your property
• The money invested into these bonds will be exempted from the capital gain tax
• TDS is not applicable on money invested in capital bonds. However, interest income from capital gains bonds is taxable. The tenure of capital gains bonds is 3 years and the redemption is automatic. You will not get any interest after 3 years
• You are not allowed to withdraw your money invested in Capital Gains Bonds before 3 years from the date of investment
• The face Value of bond is 10,000 and you need to invest a minimum of Rs 20,000 in these bonds
• These bonds are usually issued by REC and NHAI with an interest rate of 6%
• These bonds can be held in either demat or physical form
• These bonds cannot be pledged as collateral for obtaining loans

4.Park your capital gains amount in capital gains account in case you are unable to purchase a property before your Income Tax filing date

Capital gains account scheme is available as a temporary method to save capital gains tax. This scheme is for people who are unable to invest in a new property before filing the income tax return. The scheme was introduced in 1988 and under the scheme, a capital gains account may be opened only with specified banks or institutions. The taxpayer can put his gain on his asset transaction in this account for three years. He can withdraw the amount invested for purchasing or constructing his new house, as he takes the decision to do so within the next three years. Features of the scheme are as follows:

• The taxpayer should mention that he has opted for the scheme in his Income Tax Return
• You can make the deposit anytime in installment or lump sum before the due date of filing income tax return
• Two types of accounts will be opened under this scheme. One account will enable you to withdraw money as per your requirements and other account will be like a fixed deposit
• Money withdrawn from any account has to be used within 2 months for specified use to avail capital gains exemption
• The deposited amount in this scheme can't be used as mortgage for any loan
• The interest on capital gains account is taxable. TDS will be deducted as per rules

5.Set off your capital gains against any capital loss carried forward from previous years

Income Tax Act in India allows that if a tax payer has any capital loss that have incurred earlier and carried forward, he can set off his capital gains against those losses and hence reduce his tax liability. Some key points to remember are:

• Short term capital gains can be set off against short term capital loss and long term capital gain can be set off against long term capital loss only
• The capital loss can be carry forward for a period of 8 years
• The capital loss carried forward should have been mentioned in income tax returns.