Property / Real Estate Capital Gains Tax Calculator 2026

Calculate property capital gains tax in India under Budget 2024-2026 rules. Compare 12.5% without indexation vs 20% with indexation and Section 54/54EC exemptions.

Property Details & Transactions

Purchase Price (₹)

₹

₹1.00 L₹5.00 Cr

Purchase date

Sale Consideration (₹)

₹

₹1.00 L₹10.00 Cr

Sale date

Renovations / Addition Cost (₹)

₹

₹0₹2.00 Cr

Transfer Brokerage / Legal (₹)

₹

₹0₹50.00 L

Tax Exemptions & Reinvestments

Sec 54: New House Purchase (Max ₹10 Cr)

₹

₹0₹10.00 Cr

Sec 54EC: Capital Gain Bonds (Max ₹50 Lakhs)

₹

₹0₹50.00 L

Other taxable income (yearly)

₹

₹0₹5.00 Cr

Tax regime

Residential status

Only a resident individual or HUF can choose the 20% indexed rate or set unused basic exemption against the gain (sections 197(3) and 197(2)), and only a resident individual can claim the Section 87A rebate (section 156 of the Income-tax Act, 2025). TDS on a sale by a non-resident is not shown here.

Option B: 20% With Indexation is Better

Tax Savings: ₹1.95 L; Choosing the grandfathered 20% rate with CII indexation saves you ₹1,95,000 in income tax due to substantial inflation indexation benefits on your purchase price.

Option A: 12.5% Flat

Total Tax Payable (incl. 4% Cess): ₹8.69 L; Without Indexation

Gross Sale Value: ₹90.00 L
Original Cost Deducted: -₹30.00 L
Gross Capital Gain: ₹60.00 L
Sec 54/54EC Exemptions: -₹0
Net Taxable Gain: ₹60.00 L
Net Cash in Hand: ₹51.31 L

Option B: 20% Indexed

Lower Tax

Total Tax Payable (incl. 4% Cess): ₹6.74 L; With CII Inflation

Indexed Cost (CII 384/200): -₹57.60 L
Indexed Gross Gain: ₹32.40 L
Sec 54/54EC Exemptions: -₹0
Net Taxable Gain: ₹32.40 L
Net Cash in Hand: ₹53.26 L

Detailed Comparison: 12.5% (No Indexation) vs 20% (With Indexation)

Financial Parameter	Option A (12.5% Flat Rate)	Option B (20% With Indexation)	Difference / Benefit
Net Sale ConsiderationSame Baseline	₹90.00 L	₹90.00 L	Same Baseline
Cost of Acquisition Deducted+₹27.60 L higher indexed cost base	₹30.00 L (Original)	₹57.60 L (Indexed CII)	+₹27.60 L higher indexed cost base
Gross Capital Gain-₹27.60 L lower gain in Option B	₹60.00 L	₹32.40 L	-₹27.60 L lower gain in Option B
Tax Exemptions (Sec 54 + 54EC)	-₹0	-₹0	—
Net Taxable Gain	₹60.00 L	₹32.40 L	—
Total Tax Liability (incl. 4% Cess)🎉 Save ₹1.95 L	₹8.69 L	₹6.74 L	🎉 Save ₹1.95 L

Comparison Visualizer: Option A vs Option B

Comparing Gross Capital Gain, Total Tax, and Net In-Hand Profit.

Property capital gains, with your numbers

Standard Formula

I = P × CII(sale year) ÷ CII(purchase year) + R × CII(sale year) ÷ CII(renovation year); A = tax on max(0, S − C − E) at r; B = tax on max(0, S − I − F) at 20%; each taxed on top of your other income (slabs, 87A rebate, surcharge, 4% cess)

Live Calculation (Plugging Your Values)

Net sale consideration (S):₹90.00 L

Purchase price (P):₹30.00 L

Renovation / addition cost (R):₹0

Purchase cost + renovation (C):₹30.00 L

Indexed Cost (CII 384/200) (I):₹57.60 L

Sec 54 + 54EC exemption, Option A (up to its gain) (E):₹0

Sec 54 + 54EC exemption, Option B (up to its gain) (F):₹0

Tax without indexation (A):₹8.69 L

Tax with indexation (B):₹6.74 L

Substituted Equation:

I = ₹30,00,000 × 384 ÷ 200 + ₹0 × 384 ÷ 200 = ₹57,60,000 + ₹0 = ₹57,60,000; A = tax on max(0, ₹90,00,000 − ₹30,00,000 − ₹0) = ₹60,00,000 at 12.5%, on top of your other income = ₹8,68,920; B = tax on max(0, ₹90,00,000 − ₹57,60,000 − ₹0) = ₹32,40,000 at 20%, on top of your other income = ₹6,73,920

Tax you pay:₹6.74 L

For property bought before 23 July 2024 you may choose either route and pay whichever is lower. Indexation lifts your purchase cost by inflation, so it usually wins when you have held the property a long time or it appreciated slowly. The flat 12.5% wins on sharp gains over a short period. Held 24 months or less, the gain is short-term: A uses your slab rate and B does not apply. Tax is worked out on top of the other income you enter, under the regime you pick: a short-term gain at your slab rates, a long-term gain at 12.5% (or 20% with indexation) with no ₹1.25 lakh exemption, after any basic exemption your other income leaves unused, with the Section 87A rebate where it applies (under the new regime it does not reach the 12.5% or 20% tax, though the gain counts toward the ₹12 lakh limit), any surcharge and 4% cess. So the tax can differ from gain × rate × 1.04.

Real Estate Capital Gains Tax Rules (Budget 2024–2026)

1. Grandfathering for Pre-July 2024 Properties

For properties acquired before 23 July 2024, resident taxpayers have the legal right to calculate tax under both mechanisms (12.5% without indexation OR 20% with CII indexation) and pay whichever results in lower tax liability.

2. Section 54: Reinvestment in House Property

Exempt 100% of capital gains by investing in a new residential house within 1 year before, 2 years after, or constructing within 3 years from the date of sale. Section 54 exemption is capped at ₹10 Crores.

3. Section 54EC: Capital Gain 5-Yr Bonds

Invest long-term capital gains within 6 months into notified bonds (REC, NHAI, PFC, IRFC) with a 5-year lock-in. Exemption is capped at ₹50 Lakhs per financial year.

4. 24-Month Holding Period Rule

Real estate held for 24 months or less is a short-term capital asset (STCG) taxed at individual slab rates. Real estate held for more than 24 months qualifies for LTCG concessional rates.

Authoritative References & Government Portals

How these numbers are checked →

Frequently Asked Questions

How is capital gains tax on property calculated in India?

Property held over 24 months qualifies for long-term treatment. For property acquired before 23 July 2024 you may choose the lower of 12.5% without indexation or 20% with CII indexation. Property acquired on or after that date is taxed at a flat 12.5% without indexation.

What is the exemption under Section 54 for house property?

Long-term gains reinvested in one residential house in India are exempt, subject to a ceiling of ₹10 crore. The new house must be bought within 1 year before or 2 years after the sale, or constructed within 3 years.

How much can I invest in Section 54EC capital gain bonds?

Up to ₹50,00,000 per financial year in notified 5-year bonds from REC, NHAI, PFC or IRFC, invested within 6 months of the sale. The interest earned is taxable, and the bonds cannot be sold or pledged during the lock-in.

What is the Capital Gains Account Scheme?

If you cannot reinvest before the ITR due date, deposit the unutilised gain in a Capital Gains Account with a bank to keep the Section 54 or 54F exemption alive. The money must then be used within the prescribed period, or it becomes taxable in the year the period expires.

What is Section 54F and how is it different from Section 54?

Section 54 applies when you sell a residential house and buy another — only the capital gain has to be reinvested. Section 54F applies when you sell any other long-term asset such as land, gold or shares, and there the entire net sale consideration must go into one residential house, otherwise the exemption is proportionate. Section 54F also requires that you do not own more than one other house on the date of transfer. Both are capped at Rs 10 crore.

What cost do I use for property inherited or bought before 2001?

For any capital asset acquired before 1 April 2001 you may substitute the fair market value as on 1 April 2001 for the actual cost, capped for land and buildings at the stamp duty value of that date. Get a registered valuer's report for that date and keep it, since assessing officers routinely ask for it. For inherited property the holding period of the previous owner is added to yours, which usually makes the gain long-term straight away.

Is TDS deducted when I sell my property?

Yes. For a resident seller the buyer deducts 1% under section 194-IA when the sale consideration or stamp duty value is Rs 50 lakh or more, and files Form 26QB within 30 days of the month end. For an NRI seller the buyer must deduct under section 195 on the capital gain at 12.5% plus surcharge and cess, using a TAN and Form 27Q. An NRI can apply in Form 13 for a lower deduction certificate so tax is not withheld on the full sale value.

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