Capital gains calculator for a property sale
Property held more than 24 months is a long term capital asset. Gains are taxed at 12.5 percent without indexation. If you are a resident individual or HUF who bought before 23 July 2024, you may instead pay 20 percent with indexation, whichever is lower.
Held 11 yr 0 mo
At 12.5% without indexation
- Section 54. Reinvesting the gain in another residential property, within the prescribed time limits.
- Section 54EC. Investing the gain in specified bonds within six months, subject to a cap.
- Capital Gains Account Scheme. Parking the gain in a designated account if you cannot reinvest before the filing due date.
Not computed here on purpose. Each carries conditions and time limits that a calculator would misrepresent.
Why this one is different
The rules changed on 23 July 2024, and the change left a choice in place for people who already owned property. If you bought before that date you can take 12.5 percent flat or 20 percent with indexation, and which is cheaper depends entirely on how much inflation ran over your holding period.
Most calculators pick one method and show it. This shows both and names the cheaper one, because on a long held flat the gap between them is real money.
Common questions
- How long must I hold a property for a long term gain?
- More than 24 months. At 24 months or less the gain is short term and is added to your income and taxed at your slab rate, which is usually a great deal more.
- Is indexation still available on property?
- Only as a grandfathered choice. A resident individual or HUF who acquired the property before 23 July 2024 may choose 20 percent with indexation or 12.5 percent without, whichever gives the lower tax. For anything acquired after that date, only the 12.5 percent option applies.
- What can I deduct from the sale price?
- The cost of acquisition, the cost of capital improvements, and expenses incurred wholly for the transfer such as brokerage and legal fees. Repairs and repainting are not improvements.
- Can I avoid capital gains tax by buying another house?
- Section 54 provides relief where the gain is reinvested in another residential property within prescribed time limits, and section 54EC covers specified bonds. Both have conditions, so take advice rather than assuming.
- Is capital gains tax on property 12.5 percent or 20 percent?
- For a property held more than 24 months, 12.5 percent without indexation. If you are a resident individual or HUF and bought before 23 July 2024, you may instead pay 20 percent with indexation, whichever is lower. Anything bought after that date has only the 12.5 percent option. The calculator shows both where the choice exists.
- How much tax do I pay when I sell my flat in India?
- It depends on the gain, not the price: sale price less the indexed or unindexed cost, improvements and transfer expenses. On a long term gain the tax is 12.5 percent of that figure, or 20 percent with indexation where the choice still applies. Reliefs under sections 54 and 54EC can reduce or remove it if the conditions are met.
Where these numbers get used
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