Estimate capital gains on the sale of land or a building and automatically compare 12.5% without indexation with the eligible 20% indexed method.
What this property capital gains calculator covers
The calculator estimates the gain on sale of Indian land or building, tests the 24-month holding period, applies the Section 50C stamp-duty-value rule, deducts eligible purchase, improvement and transfer costs, and considers an exemption amount entered by you.
12.5% vs 20% with indexation
| Method | Cost deduction | Tax rate | When shown |
|---|---|---|---|
| New method | Actual eligible cost; no indexation | 12.5% | Long-term property transferred on/after 23 July 2024 |
| Grandfathered method | Indexed acquisition and improvement cost | 20% | Eligible resident individual/HUF with pre-23 July 2024 acquisition |
| Short-term gain | Actual eligible cost | Applicable normal/slab rate | Property held for 24 months or less |
The tool recommends the lower estimated tax only where both LTCG methods are legally available. It does not offer the indexed comparison to an NRI or another ineligible taxpayer.
How Section 50C is applied
If the stamp-duty value is not more than 110% of the actual consideration, the calculator retains the actual sale consideration. If it exceeds that safe-harbour, the stamp-duty value is used as the deemed consideration for this estimate.
Cases involving an agreement-date value, part-payment before agreement, disputed valuation or a Departmental Valuation Officer require a separate review.
Cost Inflation Index used
For an eligible indexed calculation, the tool uses the notified CII for the financial year of transfer and acquisition. The indexed cost formula is:
For property acquired before 1 April 2001, the calculator uses CII 100 and treats the amount entered by you as the selected eligible cost/FMV base. Obtain a defensible valuation where required.
Important exclusions from this estimate
- Marginal relief, unabsorbed losses and basic-exemption adjustment are not computed.
- Exemption eligibility under Sections 54, 54EC or 54F is not decided automatically.
- Depreciable assets, compulsory acquisition, joint ownership, inherited/gifted property and redevelopment may need adjusted dates or costs.
- Tax deducted by the buyer, advance tax and interest are not included.
Frequently asked questions
When is property a long-term capital asset?
Land or building held for more than 24 months is generally long-term. A holding period of exactly 24 months or less is treated as short-term by this calculator.
Can every seller choose 20% tax with indexation?
No. For post-23 July 2024 transfers, the comparison is restricted to an eligible resident individual or resident HUF selling land or building acquired before 23 July 2024.
Does the calculator automatically grant Section 54 exemption?
No. You can enter a verified exemption amount, but the tool does not test the investment, timing, ownership or other statutory conditions.
Why can stamp-duty value increase the gain?
Section 50C can substitute a higher stamp-duty value for actual consideration. The current statutory safe-harbour is applied where the stamp value does not exceed 110% of actual consideration.
Is this calculator suitable for an NRI?
It can estimate the gain and the 12.5% LTCG route, but it deliberately does not give an NRI the resident-only 20% indexed comparison. TDS, treaty and repatriation consequences require separate review.
Related TaxClear tools
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Get tax consulting supportDisclaimer: This is an educational estimate based on the inputs and assumptions selected. It is not legal or tax advice. Verify the transaction documents, applicable Finance Act, exemptions, surcharge, marginal relief and filing treatment before relying on the result.
