Capital gains tax calculator for selling a flat or plot
Property held more than 24 months is a long-term asset. For sales after 23 July 2024 the long-term rate is 12.5% without indexation; for property acquired before that date, resident individuals may instead choose 20% with indexation if it gives lower tax. Short-term gains are taxed at your slab rate. This estimator computes both routes and the exemption available if you reinvest in another home.
- Nature of gain
- Long-term (held 11 years)
- Gain without indexation
- ₹41.1 L
- Tax at 12.5% (no indexation)
- ₹5.34 L
- Indexed gain (if eligible)
- ₹18.04 L
- Tax at 20% with indexation (if eligible)
- ₹3.75 L
- Section 54 exemption applied
- ₹0
- Notes
- Indexation route is cheaper here (available to resident individuals/HUFs for property acquired before 23 July 2024). Includes 4% cess, excludes surcharge. Section 54 exemption is capped at ₹10 crore and needs purchase within 2 years (or construction within 3).
Copy link to this calculation · JSON API · Estimates only; verify rates with the source below.
How it is calculated
Gain = sale price − transfer expenses − purchase cost − improvement cost. Long-term (held over 24 months): tax at 12.5% without indexation; for property acquired before 23 July 2024, resident individuals may use 20% on the indexed gain (cost × CII of sale year ÷ CII of purchase year) if lower. Reinvestment in one residential house within the time limits exempts that much gain (section 54, cap ₹10 crore). Short-term gains are added to income and taxed at slab. 4% health and education cess is added; surcharge is ignored.
Worked example
Bought 2015 for ₹45 lakh, improved by ₹3 lakh, sold 2026 for ₹90 lakh with ₹90,000 expenses: gain ₹41.1 lakh → ₹5.34 lakh at 12.5%; indexed cost ₹71 lakh gives a gain of ₹18.1 lakh → ₹3.75 lakh at 20%, so indexation wins. Reinvesting ₹18.1 lakh in a new flat within two years reduces the tax to nil.
Frequently asked questions
What is the capital gains tax rate on property in India now?
12.5% without indexation on long-term gains (held over 24 months). Property bought before 23 July 2024 can alternatively use 20% with indexation if that gives lower tax. Short-term gains are taxed at your slab rate.
How can I save capital gains tax on selling a flat?
Reinvest the gain in one residential house within 2 years (or construct within 3) under section 54, or invest up to ₹50 lakh in NHAI/REC bonds within 6 months under section 54EC. Park unused amounts in a Capital Gains Account Scheme before the return filing date.
Does the buyer's TDS cover my capital gains tax?
The 1% TDS is only an advance; you compute the actual gain in your return and pay or claim the difference.
Sources and what to verify: Finance (No. 2) Act 2024 amendments to s.112 and s.48; CII table (CBDT).
Estimates for planning only; not financial, legal or tax advice. Figures reflect common practice and published rates as of November 2026. Found an outdated rate? Email hello@zeorent.com.