How long must I hold property for long-term gains?

More than 24 months from the date of purchase (or allotment, for under-construction property, as held in many cases) to the date of transfer.

Can I reduce the gain with renovation costs?

Yes, capital improvements such as an extra floor or major structural work count, with bills. Routine repairs and maintenance don't.

Is TDS deducted when a resident sells property?

Yes, the buyer deducts 1% of the price if it is ₹50 lakh or more. For NRI sellers, TDS is on the gain at 12.5%/30% plus surcharge and cess.

Can I rely on this calculator's result for filing?

Use it as a planning estimate. The final figure depends on the tax year's rules and your exact documents, so a CA should review it before you file or pay.

Does the calculator store my data?

No. The calculation runs in your browser and nothing you type is saved. If you want a CA to review it, share your documents through our checklist-led process.

Property calculator

Property Capital Gains (With Indexation)

Gains on property held for more than 24 months are long-term and taxed at 12.5% without indexation. Resident individuals and HUFs selling property bought before 23 July 2024 can instead pay 20% with indexation, whichever is lower. The sale price is replaced by the stamp-duty value if that is more than 110% of the price, and the gain can be reduced to nil by reinvesting under Sections 54, 54F or 54EC.

Long-term after: 24 months
LTCG rate: 12.5% (or 20% indexed)
Exemption options: 54, 54F, 54EC

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Property Capital Gains (with Indexation)

LTCG on residential property — compare 20% with indexation vs 12.5% without (Budget 2024 options).

Property CG

Purchase price (₹)

Sale price (₹)

Stamp duty paid at purchase (₹)

Year of purchase (FY)

Year of sale (FY)

Improvement cost (₹)

Sale expenses / brokerage (₹)

Option A — 20% with Indexation

CII purchase (2018-19): 280 | CII sale (2024-25): 363

Indexed cost: ₹41,22,643

LTCG: ₹28,07,357

Tax + Cess: ₹5,83,930.29

₹5,83,930.29

Option B — 12.5% without Indexation

Lower Tax

Plain capital gain: ₹37,50,000

Tax + Cess: ₹4,87,500.00

₹4,87,500.00

For property purchased before July 23, 2024, you can choose the option that results in lower tax. For property purchased on or after July 23, 2024, only Option B (12.5% without indexation) applies. Exemptions under Section 54/54EC can reduce tax further. Consult a CA.

Computing the gain

Step	What to use
Full value of consideration	Sale price, or stamp-duty value if higher by more than 10%
Less: transfer expenses	Brokerage, legal fees
Less: cost of acquisition	Purchase price + stamp duty; FMV on 1 April 2001 for older property
Less: cost of improvement	Capital improvements after 1 April 2001
= Capital gain	Long-term if held > 24 months

Which rate to choose

Residents with pre-23-July-2024 purchases: compute both and pay the lower
NRIs and property bought after 23 July 2024: 12.5% without indexation
Short-term gains: slab rates
Inherited property: previous owner's cost and holding period count

Worked example: plot bought in 2012 for ₹25 lakh, sold in FY 2025-26 for ₹85 lakh

1Without indexation: gain ₹60 lakh × 12.5% = ₹7.5 lakh.
2With indexation: indexed cost = ₹25 lakh × 376 ÷ 200 (CII 2012-13) = ₹47 lakh; gain ₹38 lakh × 20% = ₹7.6 lakh.
3The resident seller pays the lower: ₹7.5 lakh (without indexation).

Tax ≈ ₹7.8 lakh with cess — or nil with full reinvestment under 54F/54EC.

Official sources

incometaxindia.gov.in

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