Capital gains tax calculator for property sale

For property sold on or after 23 July 2024, long-term capital gains (holding more than 24 months) are taxed at 12.5% without indexation, plus surcharge and 4% cess. If you are a resident individual or HUF and bought the property before 23 July 2024, you pay the lower of 12.5% without indexation or 20% with indexation. Short-term gains are added to your income and taxed at slab rates. For FY 2026-27 these rules continue under Section 197 of the Income-tax Act, 2025.

Only as a comparison. If you are a resident individual or HUF and the land or building was acquired before 23 July 2024, the law lets you pay the lower of 12.5% tax without indexation or 20% tax with indexation. Indexation uses the Cost Inflation Index of the year of sale — 384 for FY 2026-27, notified by CBDT Notification 85/2026. NRIs, companies and firms cannot use this option; they pay 12.5% without indexation.

Indexed cost equals your purchase cost multiplied by the Cost Inflation Index of the year of sale, divided by the CII of the year of purchase (or FY 2001-02, whichever is later). For example, a property bought in FY 2005-06 (CII 117) and sold in FY 2026-27 (CII 384) has its cost multiplied by 384/117, roughly 3.28 times. For property bought before 1 April 2001, you may use the fair market value on 1 April 2001, capped at that date's stamp duty value.

The two main routes are Section 54 — reinvest the gain from a residential house into another residential house in India within 1 year before or 2 years after sale (3 years if constructing), exemption capped at ₹10 crore — and Section 54EC — invest up to ₹50 lakh of the gain in notified bonds of REC, PFC, IRFC or HUDCO within 6 months, with a 5-year lock-in and ₹20,000 minimum. Under the Income-tax Act 2025 these appear as Sections 82 and 85. Unused gains can be parked in a Capital Gains Account Scheme before the return filing due date.

When a society member receives a new flat in redevelopment under a registered agreement, Section 45(5A) of the Income-tax Act 1961 — carried into Section 67 of the Income-tax Act 2025 — defers the capital gains tax to the year in which the completion certificate is issued, and Section 54 exemption is generally available on the new flat. Corpus and rent have their own treatment. Redevelopment taxation is fact-specific, so have a chartered accountant review your case.

Yes. If the stamp duty (ready reckoner) value is more than 110% of your actual sale price, the stamp duty value is treated as your sale price for capital gains under Section 50C of the 1961 Act — now Section 78 of the Income-tax Act 2025. Within the 10% tolerance band, your actual price is accepted. If you dispute the stamp valuation, you can ask the assessing officer to refer the property to a valuation officer.

More than 24 months. If you sell land or a building within 24 months of acquiring it, the gain is short-term and is added to your income at slab rates. Held for more than 24 months, it is long-term and taxed at the special 12.5% rate (or the grandfathered 20% with indexation option where eligible). In a redevelopment, the holding period of the old flat generally counts from when you acquired the old flat.