Selling a ₹80 lakh Flat for ₹1.50 crore: The Tax

On a flat bought at ₹80 lakh and sold at ₹1.50 crore after 10 years, the gain is ₹70 lakh. As a long-term gain it is taxed at 12.5%, giving roughly ₹8,75,000 before exemptions.

The awkward part of this one is the size of the gain. ₹70 lakh is more than capital-gains bonds can absorb in a year, so the exemption route has to be planned before completion rather than chosen afterwards.

The calculation

What changes at this price

Because the consideration is ₹1.50 crore — at or above the ₹50 lakh line — the buyer must deduct 1% TDS on the purchase of immovable property (section 393(1), Table Sl. No. 3(i) of the Income-tax Act, 2025 — the provision that replaced section 194-IA on 1 April 2026), about ₹1,50,000. That is not an extra tax; it is an advance against this bill, and it only reaches you as credit if the buyer files Form 26QB correctly with your PAN. Check your Form 26AS before you file. The second thing this price changes is section 54EC. Bond investment is capped at ₹50 lakh in a financial year, and the gain here is ₹70 lakh — so bonds alone cannot shelter it. Roughly ₹20 lakh of gain would remain exposed, which is why at this size section 54 (reinvesting in a house) or a split across two financial years usually does the real work.

Surcharge and the year you complete in

A gain of ₹70 lakh will usually take total income past ₹50 lakh, which adds a 10% surcharge on the tax. That is the threshold worth checking before you fix a completion date, because it is decided by the year the transfer falls in, not the year you are paid.

Section 54, section 54EC, the Capital Gains Account Scheme, what you may add to cost of acquisition and the documentation assessing officers actually ask for are the same whatever the price — they are covered in full in capital gains tax on a property sale.

If you are an agent guiding a seller through this, the seller guides cover the conversation and the paperwork order.

This article is general information, not financial advice. Tax positions turn on individual facts and change with each Finance Act. Confirm with a chartered accountant before you sign.

A note on section numbers: the Income-tax Act, 2025 replaced the Income-tax Act, 1961 from 1 April 2026 (Ministry of Finance, 1 April 2026), without changing the underlying rates or thresholds. TDS on the purchase of immovable property now sits in section 393(1), Table Sl. No. 3(i) — still 1%, still on consideration or stamp duty value, whichever is higher, and still only where that figure is ₹50 lakh or more. The capital-gains reliefs carry over too; we name the amounts rather than the old section numbers where we could not confirm the new numbering. Checked 2026-09-20.