Selling a ₹90 lakh Flat for ₹1.35 crore: The Tax

On a flat bought at ₹90 lakh and sold at ₹1.35 crore after 5 years, the gain is ₹45 lakh. As a long-term gain it is taxed at 12.5%, giving roughly ₹5,62,500 before exemptions.

With a gain of ₹45 lakh on a ₹1.35 crore sale, the tax is small enough to be overlooked and large enough to matter — and it falls due at filing whether or not the proceeds are still in the account.

The calculation

What changes at this price

Because the consideration is ₹1.35 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 ₹1,35,000. 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 gain of ₹45 lakh also sits inside the ₹50 lakh capital-gains-bond ceiling, so bonds alone could shelter all of it if you would rather not buy another property.

Surcharge and the year you complete in

A gain of ₹45 lakh on its own is unlikely to push total income past the ₹50 lakh surcharge threshold, so the 12.5% is normally the whole rate you pay. Add it to your other income before assuming so — the threshold looks at the total, not at the gain alone.

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.