Capital Gains Tax on Property
Calculate long-term and short-term capital gains tax on the sale of property in India, with the post-2024 12.5% rate and the indexation option for older purchases.
💼 Are you a real estate agent or broker? Send this calculator to your buyers on your own branded listing page — every enquiry comes straight to your WhatsApp. Create free agent page →Sell a property you have held for more than 24 months and the profit is a long-term capital gain. From 23 July 2024 the LTCG rate on property is 12.5% without indexation. Resident individuals who bought before that date may instead choose the old 20% with indexation, and pay whichever is lower.
Hold for 24 months or less and the entire gain is short-term, added to your income and taxed at your slab rate — which for most sellers is materially worse than either long-term option.
How the gain is worked out
Capital gain = sale price − (purchase price + cost of improvement + transfer expenses)
Transfer expenses include brokerage, legal fees and the cost of obtaining certificates. Improvement means capital additions — an extra room, not repainting.
Which rate
- Held ≤ 24 months — short term. The gain is added to your total income and taxed at your slab, up to 30% plus cess.
- Held > 24 months — long term at 12.5% without indexation. For property acquired before 23 July 2024, resident individuals and HUFs may compute tax under the old 20% with indexation route and pay the lower of the two. This calculator shows both.
How to pay less, legally
- Section 54 — reinvest the gain from a residential house into another residential house (buy within 2 years, or build within 3) and the gain is exempt. Capped at ₹10 crore.
- Section 54EC — invest up to ₹50 lakh of the gain in NHAI or REC bonds within 6 months, locked for 5 years.
- Capital Gains Account Scheme — if you cannot reinvest before the return due date, park the money in a CGAS account with a bank to keep the exemption alive.
- Set off losses — long-term capital losses can be carried forward eight years and set against future long-term gains.
This is an estimate, not tax advice. Surcharge and 4% health & education cess are not included, and TDS under Section 194-IA applies at 1% on sales above ₹50 lakh. Confirm with a chartered accountant before filing.
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Create your free property pageFrequently asked questions
What is the capital gains tax on property in India in 2026?
Long-term gains on property held over 24 months are taxed at 12.5% without indexation. Property bought before 23 July 2024 can alternatively be taxed at 20% with indexation if that produces a lower liability. Short-term gains are taxed at your slab rate.
How long must I hold property to get the long-term rate?
More than 24 months from the date of acquisition. For inherited property the previous owner’s holding period is included, which usually makes an inherited sale long-term immediately.
Can I avoid capital gains tax by buying another house?
Section 54 exempts the gain if you reinvest in another residential property — purchased one year before or two years after the sale, or constructed within three years — subject to a ₹10 crore cap.
Is indexation still available?
Only as an option, and only for property acquired before 23 July 2024 by resident individuals and HUFs. For anything bought after that date the flat 12.5% applies with no indexation.
Is TDS deducted when I sell?
Yes. The buyer must deduct 1% TDS under Section 194-IA on sale consideration of ₹50 lakh or more, and deposit it against your PAN. You adjust it against your final liability when filing.