About the Capital Gains Property Calculator
What is the Capital Gains Property Calculator?
The Finance (No. 2) Act, 2024 cut the long-term rate on property to 12.5% and removed indexation, but resident individuals and HUFs who bought land or buildings before 23 July 2024 can still choose 20% with indexation if it gives lower tax.
This capital gains tax on property calculator works out both options using the Cost Inflation Index, picks the lower tax, and shows your net proceeds. Sales within 24 months are taxed as short-term gains at your slab rate.
How to use the Capital Gains Property Calculator
- Purchase Price incl. Stamp Duty (₹) (sample: 40,00,000)
- Financial Year of Purchase (sample: 2015-16)
- Cost of Improvements (₹) (sample: 3,00,000)
- Sale Price (₹) (sample: 90,00,000)
- Brokerage & Transfer Expenses (₹) (sample: 90,000)
- Holding Period (months) (sample: 120)
- Your Income Tax Slab Rate (sample: 30%)
- Press Calculate Property Capital Gains (results also refresh as you type). The result card shows the Capital Gains Tax Payable, along with Type of gain, Capital gain (without indexation), Tax at 12.5% without indexation and Indexed gain.
Formula used
Tax = min(Gain × 12.5%, Indexed gain × 20%) × 1.04
- Gain = sale price − transfer expenses − purchase cost − improvements
- Indexed gain = sale price − expenses − (cost + improvements) × CII of 2025-26 (376) ÷ CII of the purchase year
Improvement costs strictly should be indexed from their own year; using the purchase year is a simplification.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Purchase Price incl. Stamp Duty (₹) | 40,00,000 |
| Financial Year of Purchase | 2015-16 |
| Cost of Improvements (₹) | 3,00,000 |
| Sale Price (₹) | 90,00,000 |
| Brokerage & Transfer Expenses (₹) | 90,000 |
| Holding Period (months) | 120 |
| Your Income Tax Slab Rate | 30% |
| Result | Value |
|---|---|
| Capital Gains Tax Payable | ₹5,29,286 |
| Type of gain | Long-term (held over 24 months) |
| Capital gain (without indexation) | ₹46,10,000 |
| Tax at 12.5% without indexation | ₹5,99,300 |
| Indexed gain | ₹25,44,646 |
| Tax at 20% with indexation | ₹5,29,286 |
| Net proceeds after tax | ₹83,80,714 |
How property sales are taxed
| Situation | Tax treatment |
|---|---|
| Held 24 months or less | Short-term gain, added to income and taxed at your slab rate |
| Held over 24 months, bought on or after 23 July 2024 | Long-term gain at 12.5% without indexation |
| Held over 24 months, bought before 23 July 2024 (resident individual or HUF) | Lower of 12.5% without indexation or 20% with indexation |
| NRI seller | 12.5% without indexation; the buyer deducts TDS under Section 195 |
Add 4% health and education cess, and surcharge (capped at 15% on capital gains) when total income exceeds ₹50 lakh.
Tips for using the Capital Gains Property Calculator
- Keep the purchase deed, stamp duty receipts and bills for improvements to prove your cost.
- Reinvest the gain in a house (Section 54/54F) or 54EC bonds to reduce or remove the tax.
- For property bought before 1 April 2001, you can use the fair market value on that date as the cost.