Property Capital Gains Tax Calculator India — LTCG FY 2025-26
Calculate long-term capital gains tax on your property sale. Auto-compare Option A (12.5% without indexation) and Option B (20% with CII indexation). Save tax with Section 54 reinvestment or Section 54EC bonds. Includes inherited property rules. Updated for Finance Act 2024.
Finance Act 2024 rates · FY 2025-26 · Updated 2026-03-26 · Verify with a CA for tax filing
How to Use This Calculator
Property LTCG tab
Enter your purchase price, purchase year & month, sale price, and sale year & month. The calculator determines the holding period automatically. If the property is long-term (>24 months), it computes both options under Finance Act 2024 and auto-recommends the one with lower tax. For properties acquired before 23 July 2024, use the More Options toggle to confirm eligibility for Option B (20% with indexation).
Section 54/54EC Exemption tab
Enter your LTCG amount (from Tab 1 or your CA's computation), the amount you plan to reinvest in a new house (Section 54), and the amount you will invest in NHAI/REC bonds (Section 54EC, capped at ₹50 Lakh). The calculator shows the exempt amount and remaining taxable gain under each option and both combined.
Inherited Property tab
Enter the original owner's purchase cost and purchase year (the cost and holding period carry forward under Section 49(1)). Enter your planned sale price and sale year. The calculator computes LTCG tax with both options, accounting for the extended holding period from the original purchase date.
Share your result
Every input is encoded in the URL. Use the Share button to send your exact calculation to your CA, family member, or save for later reference.
LTCG Tax Formula — Finance Act 2024
LTCG = Sale Price − Purchase Price
Tax = LTCG × 12.5%
Option B — 20% with CII indexation (only for pre-23 Jul 2024 acquisitions):
Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year)
LTCG = Sale Price − Indexed Cost
Tax = LTCG × 20%
Choose whichever gives lower tax.
After-tax (add 4% cess):
Effective Tax = Base Tax × 1.04
Property is a long-term capital asset if held for more than 24 months. If held 24 months or less, gains are short-term and taxed at your income slab rate (up to 30%).
Worked Example — Choosing Between Option A and Option B
Holding period: 7 years = Long-Term. Acquired before 23 Jul 2024 → both options available.
Option A (12.5%, no indexation):
LTCG = ₹1,20,00,000 − ₹40,00,000 = ₹80,00,000
Tax = ₹80,00,000 × 12.5% = ₹10,00,000
Option B (20%, with CII indexation):
CII 2018-19 = 280 | CII 2025-26 = 377
Indexed cost = ₹40,00,000 × (377 ÷ 280) = ₹53,86,000 (approx)
LTCG = ₹1,20,00,000 − ₹53,86,000 = ₹66,14,000
Tax = ₹66,14,000 × 20% = ₹13,23,000
Recommendation: Choose Option A — saves ₹3,23,000.
Effective tax (with 4% cess) = ₹10,00,000 × 1.04 = ₹10,40,000
LTCG = ₹80,00,000. Reinvest ₹80,00,000 in a new house within 2 years.
Exempt under Section 54 = ₹80,00,000. Taxable gain = ₹0. Tax = ₹0.
Section 54EC Example:
LTCG = ₹80,00,000. Invest ₹50,00,000 in NHAI bonds (maximum allowed).
Exempt under Section 54EC = ₹50,00,000. Taxable gain = ₹30,00,000.
Tax = ₹30,00,000 × 12.5% = ₹3,75,000.
Cost Inflation Index (CII) Table — FY 2001-02 to 2025-26
CII is notified by CBDT each year under the Income Tax Act. It measures inflation in asset values for tax purposes. The base year is 2001-02 (CII = 100). If the original property was purchased before 1 April 2001, use the Fair Market Value (FMV) as on 1 April 2001 as the cost basis (requires a registered valuer certificate).
Frequently Asked Questions
A property (land or building) is a long-term capital asset if it is held for more than 24 months before sale. If sold within 24 months, it is short-term and gains are taxed at your income slab rate (up to 30%). The 24-month rule applies under Finance Act 2024 — it was previously the same, but was clarified alongside the rate change. Note: for listed equity shares and equity mutual funds, the holding period for LTCG is only 12 months.
Yes. The cost of acquisition for capital gains purposes includes the property purchase price plus stamp duty, registration charges, brokerage paid to the real estate agent, and any legal/documentation fees paid at the time of purchase. Home loan interest is generally not included in the cost of acquisition (it may qualify as deduction under Section 24(b) while the property is self-occupied or let out, but cannot be added to cost of acquisition once that deduction has been claimed). Improvement costs (renovation, construction of an additional floor) can be added to the cost of improvement.
If you cannot reinvest your capital gains in a new house (Section 54) or bonds (Section 54EC) before the due date for filing your income tax return, you can park the unused capital gains in a Capital Gains Account Scheme (CGAS) with an authorised bank. This protects your exemption claim even if the investment is not complete by the return filing date. The CGAS funds must then be utilised within the prescribed time limit (2 years for purchase, 3 years for construction under Section 54). If not utilised, the amount becomes taxable in the year the time limit expires.
Section 54 applies when you sell a residential house and reinvest the LTCG in a new residential house. Exemption = amount reinvested (up to LTCG).
Section 54F applies when you sell any long-term capital asset other than a residential house (e.g., plot of land, commercial property, gold, shares) and reinvest the net sale consideration in a new residential house. The exemption is proportional: (Capital Gains × Amount invested) / Net Sale Consideration. Section 54F requires you to not own more than one residential house (besides the new one) at the time of sale. Section 54 has no such restriction.
For jointly owned property, capital gains are split in proportion to each co-owner's ownership share. Each co-owner declares their proportional gain in their own income tax return and pays tax independently. This is advantageous when co-owners are in different tax brackets or one of them has losses to offset. Each co-owner can also separately claim Section 54 or 54EC exemptions up to their proportional LTCG amount. Joint owners should ensure the sale deed clearly states the ownership ratio.
Related Calculators
Embed This Calculator
Add the Property Capital Gains Tax Calculator to your website, blog, or CA portal. Free to embed, no registration required.