Tax on Sale of Land, Plot or Commercial Property
Capital gains on land, plots, shops and offices — including agricultural land
- 1ClassifyAsset type and land status established.
- 2ComputeGain computed with all options.
- 3ExemptReinvestment planned to the law's conditions.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About Tax on Sale of Land, Plot or Commercial Property
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
Land, plots and commercial property follow the same capital gains rules as houses — long-term after 24 months, 12.5% without indexation (with the resident 20%-with-indexation option for pre-23 July 2024 purchases). But Section 54 doesn't apply; instead Section 54F exempts the gain if the whole net sale proceeds are invested in a residential house, and Section 54EC bonds remain available. Rural agricultural land is not a capital asset at all, so its sale isn't taxed as capital gains.
Whether agricultural land is 'rural' depends on its distance from municipal limits and the population of the municipality — a fact that often decides whether any tax is due. Urban agricultural land is a capital asset, though Section 54B can help farmers who buy other agricultural land.
Section 54F has a condition that surprises people: on the date of sale you must not own more than one residential house other than the new one, and the exemption is proportionate unless the entire net consideration is reinvested.
| Rural agricultural land | Not a capital asset — no capital gains |
|---|---|
| Exemption | Section 54F (invest net sale proceeds in a house), 54EC bonds |
| 54F condition | Must not own more than one other residential house on the sale date |
| Section 50C | Applies to land and buildings |
| Agricultural land buyers | Section 54B for farmers reinvesting in agricultural land |
Who this is for
Common scenarios where this service is a good fit.
- Owners selling plots or land
- Farmers selling agricultural land near cities
- Investors selling shops or office space
What you get
Clear deliverables so you know exactly what's included.
- Rural/urban land analysis
- Gain computation and 50C check
- 54F / 54EC / 54B planning
- ITR filing
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Asset type and land status established.
Gain computed with all options.
Reinvestment planned to the law's conditions.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
Answers to the most common questions we get.
This page also covers
- Plot sale tax
- Residential and commercial plots.
- Commercial property tax
- Shops, offices and warehouses.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
