Property Capital Gains Tax Calculator India 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). Use the calculator above to run both LTCG limbs on your own purchase date and see which one it picks.

The Cost Inflation Index (CII) for FY 2025-26 is 376, notified by CBDT Notification No. 70/2025 dated 1 July 2025 for Assessment Year 2026-27 — up from 363 for FY 2024-25. CBDT's table now also lists 384 for 2026-27 (checked 2026-09-21). 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, and it does not automatically produce a lower tax bill — compare it against the 12.5%-flat-no-indexation figure before assuming indexation wins.

Under Section 54 of the Income-tax Act, 1961 (section 82 of the Income-tax Act, 2025 for sales from 1 April 2026), 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. Source: Income Tax Department, Government of India (incometaxindia.gov.in), Sections 54 and 54EC; sections 82 and 85 of the 2025 Act — checked 2026-09-21.

If you are a resident Indian seller, the buyer deducts 1% TDS under Section 194-IA (section 393(1) of the Income-tax Act, 2025) on the higher of the sale consideration or the stamp duty value, wherever that figure is ₹50 lakh or more. 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. Source: Income Tax Department (incometaxindia.gov.in), checked 2026-08-30. If you are an NRI seller, the buyer deducts under Section 195 at the rate that applies to your gain — for a long-term gain on a transfer on or after 23 July 2024, 12.5% (section 112(1)(c), checked 2026-09-21) plus surcharge and cess — and there is no ₹50 lakh threshold.

Three steps. First, the holding period: sale price minus purchase price is Short-Term Capital Gain (STCG) if you held the property 24 months or less, and Long-Term Capital Gain (LTCG) if you held it longer — the threshold has been 24 months for immovable property since Budget 2017 and Budget 2024 left it unchanged. Second, the rate: STCG is added to your income and taxed at your slab rate; LTCG on a property bought on or after 23 July 2024 is a flat 12.5% with no indexation, while LTCG on a property bought before that date lets you choose the lower of 12.5% without indexation or 20% with indexation (Cost Inflation Index). Third, exemptions: Section 54 can exempt LTCG if you reinvest in another Indian residential property within the specified window, and Section 54EC bonds are a second route. Source: Finance (No. 2) Act, 2024 and Income Tax Department, Government of India (incometaxindia.gov.in) — sections 2(42A) and 112 of the 1961 Act and 197 of the 2025 Act, checked 2026-09-21.