What is the capital gains tax on property sale in India?

For properties held over 2 years (LTCG): properties bought before July 23, 2024 can choose between 20% with CII indexation or 12.5% without indexation -- whichever gives lower tax. Properties bought after July 23, 2024 are taxed at a flat 12.5% without indexation.

What is Section 54 exemption?

Section 54 allows exemption from LTCG tax if you reinvest the capital gains in a new residential property within 2 years of sale or 3 years for under-construction property.

Capital Gains Tax Calculator

Calculate long-term and short-term capital gains tax on property sales in India. Compare dual-regime options for properties purchased before July 2024 with CII indexation benefit.

Purchase Price

₹ 10.00 L₹ 50.00 Cr

Sale Price

₹ 10.00 L₹ 50.00 Cr

Purchase Year

Sale Year

Purchased after July 23, 2024?

LTCGHolding Period: 84 months

Capital Gain

₹ 30,00,000

With Indexation (20%)

Indexed Cost: ₹ 67,14,286

Capital Gain: ₹ 12,85,714

Tax: ₹ 2,57,143

Recommended

Without Indexation (12.5%)

Capital Gain: ₹ 30,00,000

Tax: ₹ 3,75,000

Section 54 Exemption

You may claim exemption under Section 54 by reinvesting in a residential property within 2 years of sale (or 3 years for construction). The exemption is limited to the capital gain amount or the cost of the new property, whichever is lower. Consult a chartered accountant for your specific situation.

These calculations are for informational purposes only. Actual values may vary based on lender terms and government notifications. Consult a financial advisor for personalized guidance.

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