Property Capital Gains Tax Calculator India 2026
Selling a house or flat? Your tax depends on how long you held it, when you bought it, and whether you reinvest the gains. The Budget 2024 changed LTCG rules significantly — use this guide to calculate exactly what you owe.
Key 2026 rule — the 23 July 2024 date matters
- ·Property bought before 23 Jul 2024: You can choose between 12.5% (no indexation) OR 20% (with indexation). Choose whichever gives lower tax.
- ·Property bought on or after 23 Jul 2024: Only 12.5% without indexation applies for LTCG.
- ·Held ≤ 24 months: Always STCG — added to income, taxed at your slab rate.
Capital gains tax rates on property — 2026
Capital Gains Tax Rates 2026
| Holding period | Type | Tax rate (2026) | Indexation available? |
|---|---|---|---|
| ≤ 24 months | STCG | Income slab rate (up to 30%) | No |
| > 24 months — property bought before 23 Jul 2024 | LTCG | 12.5% OR 20% with indexation | Yes — choose lower |
| > 24 months — property bought on/after 23 Jul 2024 | LTCG | 12.5% flat | No |
Understanding indexation and CII
Indexation adjusts your purchase price for inflation using the Cost Inflation Index (CII), reducing your taxable gain. It is only available for pre-23 July 2024 purchases held more than 24 months.
Indexation formula
Indexed cost = Purchase price × (CII of sale year ÷ CII of purchase year)
CII for FY 2024-25 = 363 (CBDT notified). FY 2025-26 CII not yet notified — use 363 as estimate.
Example: Property bought in FY 2012-13 for ₹40L, sold in FY 2025-26
Indexed cost = ₹40L × (363 ÷ 200) = ₹40L × 1.815 = ₹72.6L
Gain with indexation = ₹1.2Cr – ₹72.6L = ₹47.4L
Tax at 20% = ₹9.48L
Without indexation: gain = ₹80L, tax at 12.5% = ₹10L
→ With indexation saves ₹52,000 in this case
CII table — key years
Cost Inflation Index (CII) — India
| Financial Year | CII | Financial Year | CII |
|---|---|---|---|
| FY 2001-02 (base) | 100 | FY 2015-16 | 254 |
| FY 2005-06 | 117 | FY 2018-19 | 280 |
| FY 2010-11 | 167 | FY 2022-23 | 331 |
| FY 2012-13 | 200 | FY 2023-24 | 348 |
| FY 2013-14 | 220 | FY 2024-25 | 363 |
| FY 2014-15 | 240 | FY 2025-26 | TBD* |
*FY 2025-26 CII not yet officially notified as of June 2026. Use 363 (FY 2024-25) as a conservative estimate.
Section 54 — save tax by reinvesting in property
You can exempt LTCG if you reinvest the gains (not the full sale price) in a new residential property:
Real-world examples
Capital Gains Tax Examples — 2026
| Scenario | Purchase price | Sale price | Tax payable |
|---|---|---|---|
| Bought Apr 2018 (pre-Jul 2024), sold Jun 2026 | ₹50L | ₹1.2Cr | ₹8.75L (12.5% on ₹70L gain) or ~₹6.8L with indexation |
| Bought Jan 2025 (post-Jul 2024), sold Jun 2026 | ₹80L | ₹90L | STCG — added to income, taxed at slab |
| Bought Jan 2022, sold Jun 2026 (> 24 months) | ₹60L | ₹1Cr | ₹5L (12.5% on ₹40L gain) vs indexation option |
| Section 54 reinvestment in new property | ₹60L | ₹1Cr | ₹0 if full ₹40L reinvested in new home |
Frequently asked questions
What is the capital gains tax rate on property sale in India for 2026?
For properties held more than 24 months (Long-Term Capital Gain): If the property was purchased on or after 23 July 2024, LTCG is taxed at 12.5% without indexation benefit. If purchased before 23 July 2024, you can choose the lower of: (a) 12.5% without indexation, or (b) 20% with indexation (using CII). For properties held 24 months or less (Short-Term Capital Gain): gains are added to your total income and taxed at your applicable income tax slab rate (up to 30% + surcharge + cess).
What is the Cost Inflation Index (CII) for FY 2025-26?
The Cost Inflation Index (CII) for FY 2025-26 is 363, as notified by CBDT. CII allows you to adjust your purchase price for inflation, reducing taxable gains. Formula: Indexed cost of acquisition = Purchase price × (CII of sale year ÷ CII of purchase year). This option is only available for properties purchased before 23 July 2024.
How does Section 54 exemption work on property sale?
Under Section 54, you can claim full or partial exemption from LTCG tax if you: (1) Sell a residential property (house/flat), and (2) Invest the capital gains (not the full sale proceeds) in purchasing or constructing another residential property in India within the specified timeline: purchase within 1 year before or 2 years after sale, or construct within 3 years after sale. The new property must be in India. Amount invested in new property = exempted LTCG. Remaining uninvested gains are still taxable. Section 54EC bonds (NHAI/REC) are an alternative — invest up to ₹50L within 6 months for exemption.
Is TDS applicable when I sell my property?
If you are a resident Indian seller, the buyer deducts 1% TDS under Section 194-IA (for properties above ₹50L) from your payment. This TDS is reflected in your Form 26AS and can be claimed as a tax credit when you file your income tax return. The remaining tax liability (if any) after the TDS credit must be paid as advance tax. If you are an NRI seller, the buyer deducts TDS at 20% (plus surcharge + cess) under Section 195.
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Disclaimer: For educational purposes only. Tax rules change — consult a chartered accountant for your specific situation. Budget 2024 LTCG changes are complex and fact-specific.