Capital gains tax on a property sale, under the July 2024 rules
Enter when you bought and sold, and for how much. You get whether the gain is long or short term, the cost indexed with the cost inflation index, and the tax at the rate your dates allow: 20% with indexation, 12.5% without, or both side by side when you may choose.
Free. Sign in once with your phone to run it.
- Held
- 10.4 years, long-term
- Indexed cost
- Rs 37,00,787 (CII 254 to 376)
- Tax at 20% with indexation
- Rs 10,59,843
- Gain without indexation
- Rs 65,00,000
Freeevery run
What we need
One thing at a time. Fill it in and press Run.
The answer
Worked out from the figures you gave, with the rule behind each number.
Nothing run yet. The answer appears here with everything this mini adds:
- Long-term or short-term, decided from your dates
- The indexed cost using the cost inflation index for both years
- The rate your dates allow: 20% with indexation, 12.5% without, or the lower of the two when you can choose
Property capital gains, briefly
The cost inflation index (CII) is a number the Central Board of Direct Taxes notifies for each financial year. The purchase price times the CII of the sale year, divided by the CII of the purchase year, gives the indexed cost.
- Long-term after
- 24 months
Land or a building held for more than 24 months gives a long-term gain. Sooner, the gain is short-term and taxed at your slab rate.
- Sales from 23 July 2024
- 12.5%
Long-term gains are taxed at 12.5% without indexation. Property bought before that date may use 20% with indexation instead, if lower.
- Bought before 2001
- 1 April 2001
The fair market value on 1 April 2001 replaces the purchase price as the cost.
How to work out capital gains tax on a property
- 1
Enter the purchase
The date and price you bought at, or the 1 April 2001 value if you bought before then.
- 2
Enter the sale
The date and price of the sale, as in the sale deed.
- 3
Compare the rates
Where your dates allow a choice, both taxes are shown so the lower one can be used.
When it helps with land
Pricing a sale
Know what you keep after tax before you agree a price with a buyer.
Old property sold now
Land bought years ago and sold after July 2024 often has a choice of rate, and the difference can be large.
A meeting with your CA
Take the indexed cost and both tax figures to the chartered accountant who files the return.
The figure is the gross gain and tax on the two prices you enter, before any exemption, surcharge or cess, and a short-term gain is shown at an assumed 30% slab. Have a chartered accountant confirm the tax before you file or sign.
Questions people ask
When is a property gain long-term?
When the property was held for more than 24 months before the sale. Held for 24 months or less, the gain is short-term and taxed at your slab rate; the mini assumes a 30% slab for it.
What changed in July 2024?
For sales from 23 July 2024, long-term gains on property are taxed at 12.5 percent without indexation. Land or a building bought before that date may instead use the older 20 percent with indexation, whichever is lower; the law gives that choice to resident individuals and HUFs. A sale before 23 July 2024 has only the 20 percent indexed rate. The mini applies the rule that fits your dates.
How is the capital gain worked out?
Sale price less the cost. For the 20% rate, the cost is first indexed: the purchase price times the cost inflation index of the sale year, divided by the index of the purchase year. For the 12.5% rate the purchase price is used as it is.
Are improvement costs and brokerage deducted?
Not in this mini. It works on the purchase and sale prices you enter. The cost of improvements and the expenses of the sale reduce the taxable gain, so give them to your chartered accountant.
Are exemptions under sections 54 and 54F included?
No. The figure is the gross gain and tax before any reinvestment exemption. A chartered accountant can apply the exemption you qualify for.
I bought before 2001. What do I enter?
The fair market value of the property on 1 April 2001, which a registered valuer can certify. It replaces the purchase price as the cost base.
Is this free?
Yes.