Hii Your case is covered by section 54F of income Tax Act,1961- you have capital gain from sale of any assets and want to purchase Residential property to save tax. your indexed cost of purchase is 1224000 sales price is 2650000 thus capital gain is 1426000. 1. you have to invest whole sales amount in to CGAS to save tax 2. CGAS is for various sections 54,54D,54EC etc. 3. Eligible Properties u/s 54D for tax saving are as under : Purchase of 1 Residential house within 1 year before or 2 year after the date of transfer of such assets construction of 1 Residential house with in 3 years after the date of such transfer thus you can purchase plot and construct the same to save tax.