Property Capital Gain Tax Calculator

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Purchase Price (₹)

₹5 Lakh₹5 Crore

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Selling Price (₹)

₹5 Lakh₹10 Crore

Selling Year

Improvement Cost (₹)

Brokerage Charges (₹)

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Property Type

Capital Gain Tax Result

LTCG

Holding Period

0 Years

Total Capital Gain

₹0

Estimated Taxable Gain

₹0

Estimated Tax Payable

₹0

You may save tax by investing in 54EC bonds within 6 months.

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Capital Gain Tax FAQs

Common questions about capital gain tax on property

Long Term Capital Gain (LTCG) on property arises when you hold a property for more than 2 years before selling it. LTCG is taxed at 20% with indexation benefit, which adjusts the purchase price for inflation, reducing your taxable gain significantly.

Capital gain tax is applicable when you sell a property at a profit. If you hold the property for 2 years or less, it is short-term capital gain (STCG) taxed at your income tax slab rate. If held for more than 2 years, it is long-term capital gain (LTCG) taxed at 20% with indexation.

Short Term Capital Gain (STCG) occurs when you sell a property within 2 years of purchase. The gain is added to your total income and taxed as per your applicable income tax slab rate. Unlike LTCG, indexation benefit is not available for short-term gains.

You can reduce capital gain tax by: 1) Investing in 54EC bonds (up to ’50 lakh) within 6 months, 2) Purchasing or constructing another residential property under Section 54, 3) Investing capital gains in specified assets under Section 54F, 4) Claiming indexation benefit for LTCG to reduce taxable gain.

Indexation is a method that adjusts the purchase price of your property for inflation using the Cost Inflation Index (CII) published by the Income Tax Department. This increases your cost basis, thereby reducing the taxable capital gain. Indexation is only available for long-term capital gains (holding period over 2 years).

What is Capital Gain Tax on Property?

Capital gain tax is a tax levied on the profit earned from selling a property. The tax treatment depends on the holding period: properties held for 2 years or less are classified as short-term capital gains (STCG) and taxed as per your income slab, while properties held for more than 2 years qualify as long-term capital gains (LTCG) and are taxed at 20% with indexation benefit. Indexation adjusts the purchase price for inflation, significantly reducing the taxable gain. You can further reduce or defer the tax by reinvesting in 54EC bonds or purchasing another residential property under Section 54. Use our capital gain tax calculator to estimate your tax liability before selling your property.