STCG & LTCG on property sale — new July 2024 rules, indexation comparison, and Section 54 exemption, live and free
Property Transaction
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Buyer & Tax Profile
Reinvestment — Section 54
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Tax Payable
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holding period
Capital Gain
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Gain Type
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Net Proceeds After Tax
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Enter the property's purchase and sale details to see your capital gains tax.
Formula Used
Holding Period = Sale Date - Purchase Date
STCG (holding < 24 months) = Sale Price - Purchase Price - Improvement Cost -> taxed at your slab rate
LTCG (purchase on/after 23-Jul-2024)
Gain = Sale Price - Purchase Price - Improvement Cost -> Tax @ 12.5% (no indexation)
LTCG (purchase before 23-Jul-2024)
Option A: Gain with indexation -> Tax @ 20%
Option B: Gain without indexation -> Tax @ 12.5%
Use whichever gives the LOWER tax
Indexed Cost = Purchase Price x (CII of Sale Year / CII of Purchase Year)
+ 4% Health & Education Cess applies on the tax amount in every case above.
20% With Indexation vs 12.5% Without Indexation
Option A — 20% with Indexation
Indexed Gain₹0
Tax (incl. 4% cess)₹0
Option B — 12.5% without Indexation
Gain (No Index)₹0
Tax (incl. 4% cess)₹0
Section 54 Exemption
Capital Gain Eligible for Exemption₹0
Reinvestment Amount Entered₹0
Sec 54 Exemption Allowed₹0
Remaining Taxable Gain₹0
Tax on Remaining Gain₹0
Exemption = lower of (Capital Gain, Reinvestment Amount, Rs.10 Crore cap). Must reinvest in one residential property in India within 2 years of sale (or complete construction within 3 years). An alternative route is Section 54EC — invest up to Rs.50 lakh in NHAI/REC bonds within 6 months of sale (5-year lock-in).
ℹ️ NRI Seller — TDS Note:
ⓘ Tax rules on capital gains are complex and change frequently. This calculator gives an estimate based on the rates announced in the July 2024 Budget and does not include surcharge (capped at 15% on LTCG) or property-specific deductions such as transfer expenses. Please consult a Chartered Accountant or tax professional before filing your return.
Purchase vs Sale vs Tax vs Net Proceeds
Summary
★ Premium Capital Gains Report — ₹99
Capital Gain
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Tax Payable
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Net Proceeds
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Holding Period
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Full computation — STCG/LTCG, indexation comparison & Sec 54 exemption
Side-by-side 20% (indexed) vs 12.5% (non-indexed) breakdown
Summary table & visual chart, ready to share with your CA
CII index values used for your purchase & sale year
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Frequently Asked Questions
What is the capital gains tax on property in India in 2025? +
When you sell a residential or commercial property in India, the profit is taxed as capital gains. If held for less than 24 months, it's short-term capital gains (STCG), taxed at your normal income tax slab rate. If held 24 months or more, it's long-term capital gains (LTCG). After the July 2024 Budget, LTCG on property purchased on or after 23 July 2024 is taxed at a flat 12.5% with no indexation. For property purchased before that date, you can choose between 20% with indexation or 12.5% without indexation, whichever gives lower tax. A 4% health & education cess applies on top.
What changed in property capital gains tax after July 2024 Budget? +
Earlier, LTCG on property was taxed at 20% with indexation. The July 2024 Budget introduced a flat 12.5% LTCG rate without indexation for property sold after 23 July 2024. As a transition relief, property purchased before 23 July 2024 can still choose whichever option, 20% with indexation or 12.5% without, gives lower tax. Property purchased on or after 23 July 2024 only gets the 12.5% flat rate — indexation is not available at all for such purchases. This calculator applies the correct rule automatically based on your purchase date.
How to save capital gains tax on property sale? +
Two main legal routes: Section 54 lets you reinvest LTCG into another residential property in India within 2 years of sale (or complete construction within 3 years) for exemption up to ₹10 crore. Section 54EC lets you invest up to ₹50 lakh of LTCG within 6 months into NHAI/REC capital gains bonds (5-year lock-in). You can also deduct actual improvement costs and transfer expenses like brokerage and legal fees from your sale price before computing the gain. Short-term capital gains do not qualify for either exemption.
What is indexation benefit for property? +
Indexation adjusts your purchase price for inflation using the Cost Inflation Index (CII), so you're taxed only on the real gain, not the inflation-driven portion. Formula: Indexed Cost = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year). A higher indexed cost means lower taxable gain. Post-July-2024, indexation is only available as an option (versus flat 12.5%) for property bought before 23 July 2024 — pick whichever gives lower tax. Property bought on or after 23 July 2024 gets a flat 12.5% rate with no indexation at all.