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LTCG tax tool

LTCG calculator for property sale

LTCG calculator for property sale in India. Enter purchase + sale year, computes indexed cost using CBDT CII table, applies 20% long-term capital gains tax.

Quick answer
Enter purchase price and year, sale price and year, and any improvement cost. We apply CBDT CII indexation and compute the long-term capital gain plus 20% tax. Example: Rs 50 lakh purchased FY 2015 sold Rs 1.5 Cr in FY 2026 gives indexed cost Rs 76.8 lakh, LTCG Rs 73.2 lakh, base tax Rs 14.6 lakh.

LTCG on property sale calculator

Indexed cost of acquisition
Rs 76.77 lakh
(Purchase + improvement) x CII ratio
Long-term capital gain
Rs 73.23 lakh
Sale price minus indexed cost
LTCG tax @ 20%
Rs 14.65 lakh
+ applicable cess + surcharge
Save LTCG tax: Reinvest the gain in another residential property under Section 54 (within 2 years for ready, 3 years for under-construction), or in 54EC bonds (NHAI / REC / PFC) within 6 months, cap Rs 50 lakh per financial year. Consult a CA for the specifics of your situation. CII values are notified by CBDT; the FY 2025-26 value is projection and will be updated once the final notification issues.

What LTCG is

Long-Term Capital Gain is the profit on sale of a property held for more than 24 months (per the Finance Act 2017 amendment). Hold under 24 months and it is a Short-Term Capital Gain (STCG), taxed at your income slab rate (up to 30% plus surcharge and cess). LTCG gets a flat 20% rate but with indexation benefit, which usually reduces the taxable gain significantly.

The indexation math

Indexed cost = (Original cost + improvement cost) x (CII of sale year / CII of purchase year). CII is the Cost Inflation Index published annually by CBDT. The idea is to adjust your purchase cost for inflation so you only pay tax on real gains, not inflation. For FY 2026-27 the CII is 390 (base year 2001-02 = 100).

Three ways to save LTCG tax

  1. Section 54 reinvestment. Buy another residential property within 2 years (ready) or 3 years (under-construction) of sale. The entire LTCG can be set off against the new property\'s cost. Cap: can only reinvest up to Rs 10 crore of gains in a single transaction under this section.
  2. Section 54F. Applies when the sold asset is not a residential property or when the gain exceeds what can be absorbed under Section 54. Reinvest the NET SALE CONSIDERATION (not just the gain) in a new residential property for full exemption.
  3. Section 54EC bonds. Invest up to Rs 50 lakh of the gain in NHAI, REC or PFC bonds within 6 months of sale. 5-year lock-in, interest around 5-5.25%. Useful when you do not want to buy another property immediately.

What this calculator does not account for

Surcharge (10% to 37% on top of base tax for high incomes), 4% health and education cess, deductions like brokerage, transfer tax, lawyer fees that can be added to cost of acquisition. For a precise return filing, hand the calculator output to a chartered accountant who will apply the full surcharge table and deductions. See LTCG on property sale India guide for the long-form walkthrough and TDS on property above Rs 50 lakh for the buyer-side 1% deduction.

Related guides

LTCG calculator for property sale · frequently asked

If you hold the property for more than 24 months (2 years) from the date of registration, the sale is long-term capital gain (LTCG) and gets the 20% tax rate with indexation benefit. Under 24 months is short-term capital gain (STCG), taxed at your income slab rate.

Cost Inflation Index (CII) is published annually by the Central Board of Direct Taxes (CBDT). The base year is FY 2001-02 at CII = 100. Each subsequent year has a higher CII reflecting inflation. Indexed cost = (purchase price) x (CII of sale year / CII of purchase year). This inflates your purchase cost so you only pay tax on real gains, not inflation.

For a long-term capital gain on immovable property, the base tax rate is 20% on the indexed gain, plus surcharge (10% to 37% depending on income) plus health and education cess (4%). The effective tax ranges from 20.8% to 28.5% including all levies.

Three main routes: (1) Section 54, reinvest the gain in another residential property within 2 years for ready-to-move or 3 years for under-construction. (2) Section 54F, applicable when you did not already have more than one residential property, reinvest the entire net consideration. (3) Section 54EC, invest up to Rs 50 lakh of the gain in NHAI/REC/PFC bonds within 6 months, 5-year lock-in.

Yes. Cost of improvement (major renovation, additional construction) incurred during the holding period can be added to the cost of acquisition, both of which get indexed. Routine maintenance and repair do not count. Keep bills and bank statements as proof.

For inherited property, the holding period includes the previous owner's holding period. So if your father bought in 1995 and you inherited in 2020 and sell in 2026, your effective holding period is 1995 to 2026 = 31 years, long-term. The indexed cost base uses the earlier of 2001-02 or the original purchase date CII.

For properties purchased before 1 April 2001, you can elect to use either the actual purchase cost OR the fair market value as of 1 April 2001 as your cost of acquisition. Then index from CII 100 (base year 2001-02). The FMV option is usually more favourable because real estate appreciated significantly in 1995-2001.

Yes. Buyer deducts 1% TDS under Section 194-IA if the sale value is Rs 50 lakh or above. For NRI sellers, TDS is 20% of the sale value or 20% of the capital gain if a lower TDS certificate is obtained. The deducted TDS is adjustable against the seller's final LTCG tax liability.

LTCG is reported in the ITR for the financial year of the sale. Advance tax applies if the LTCG liability exceeds Rs 10,000; pay in quarterly instalments or accept interest under Section 234B/234C. ITR filing deadline is 31 July of the following FY.