LTCG Property Calculator — Long-Term Capital Gains Tax on Land & Building

LTCG Property Calculator — Long-Term Capital Gains Tax on Land and Building

What is property LTCG?

Long-term capital gains (LTCG) on property arise when you sell immovable property — land, building, house, flat — after holding it for more than 24 months. Under § 112 of the Income Tax Act, the gain is taxed at a flat rate, separate from your salary income.

Budget 2024 dual-mode (for pre-23-Jul-2024 purchases)

Purchase date	Sale date	Method available
Before 23-Jul-2024	Any	Choice: 20% with CII indexation OR 12.5% without indexation
On/after 23-Jul-2024	Any	12.5% without indexation only

For purchases before the Budget 2024 cutoff, you can use whichever method results in a lower tax. The calculator shows both.

How indexed cost works

Indexed cost = Purchase price × (CII of sale FY ÷ CII of purchase FY)
LTCG (20%)   = Sale value − Indexed cost
LTCG (12.5%) = Sale value − Actual cost

Example (with indexation): Property bought in FY 2015-16 for ₹50L (CII = 254). Sold in FY 2024-25 (CII = 363).

Indexed cost = ₹50L × 363/254 = ₹71.46L
Gain = ₹1Cr − ₹71.46L = ₹28.54L
Tax at 20% = ₹5.71L

Example (without indexation): Same purchase and sale.

Gain = ₹1Cr − ₹50L = ₹50L
Tax at 12.5% = ₹6.25L

Here the 20% with-indexation method saves ₹54K. Always compare both.

§ 50C — Stamp Duty Value trigger

Under § 50C, if the Stamp Duty Value (circle rate × area) assessed by the Sub-Registrar exceeds 110% of your declared sale consideration, the SDV is used as the sale value for capital-gains computation.

§50C trigger: SDV > 1.10 × Sale consideration
Sale value for CG = SDV  (if trigger activated)
                  = Sale consideration  (if no trigger)

Bridges

Capital Gains Hub — equity, debt MF, or other asset? Pick the right calculator
Income Tax Calculator — property LTCG is separate from slab income; calculate your full liability
Advance Tax Calculator — large property gains trigger quarterly advance tax instalments

Frequently Asked Questions

What is the holding period for property LTCG? Is it the same as equity?

No. For **immovable property** (land, building, house), the holding period for long-term classification is **more than 24 months** (§ 2(42A)). For listed equity and equity MF units, it is more than 12 months. If you sell a property within 24 months of purchase, the gain is **Short-Term Capital Gain (STCG)** and is added to your total income, taxed at your slab rate.

What is the Budget 2024 dual-mode option for property LTCG?

The Finance (No.2) Act 2024 (effective 23 July 2024) changed the LTCG rate on property from **20% with CII indexation** to **12.5% without indexation**. However, for properties **purchased before 23-Jul-2024**, the government offered a transitional choice: you may compute tax under both methods and use whichever gives a **lower tax liability**. The calculator shows both. For purchases **on or after 23-Jul-2024**, only the 12.5% without-indexation method applies.

What is the §50C stamp duty value (SDV) rule?

Under **§ 50C** of the Income Tax Act, the **Circle Rate or Stamp Duty Value** (the value adopted by the Sub-Registrar for stamp duty purposes) is compared to your declared sale consideration. If SDV exceeds 110% of your declared sale consideration, the **SDV is treated as the deemed sale value** for computing capital gains — even if you actually received less. This prevents undervaluation of property sales. If SDV is ≤ 110% of the sale consideration, your actual consideration is used.

What is CII (Cost Inflation Index) and how does it reduce my tax?

The **Cost Inflation Index** is an annual index notified by CBDT under § 48 of the IT Act. It is used to inflation-adjust the purchase price of an asset. The formula is: **Indexed Cost = Actual Cost × (CII of sale year ÷ CII of purchase year)**. A higher indexed cost means a lower capital gain and therefore lower tax. For example, if CII doubled between purchase and sale year, your ₹50L cost becomes ₹100L indexed — potentially eliminating the gain entirely. The CII series starts from FY 2001-02 (base = 100).

What counts as cost of improvement for indexation purposes?

**Capital expenditure** on the property — construction of additional floors, major structural work, additions like a new room — qualifies as 'cost of improvement' under § 55(1)(b). Routine **maintenance expenses** (painting, minor repairs) do NOT qualify. For our calculator, improvement costs are added to the indexed purchase price at nominal value; for a precise answer with separately indexed improvement costs, consult a chartered accountant.

What if I reinvest in a new house — can I claim §54 exemption?

**Yes.** Under **§ 54**, LTCG on a residential house sold and reinvested in another residential house (bought within 1 year before or 2 years after the sale, or constructed within 3 years) is exempt up to the reinvestment amount. **§ 54EC** allows exemption if you invest the gain in specified bonds (NHAI/REC) within 6 months, up to ₹50L. These reinvestment exemptions are outside the scope of this calculator — it computes raw tax liability before §54/§54EC claims.

Is inherited property treated the same way for capital gains?

For inherited property, **no capital gains arise on inheritance itself** (§ 47(iii)). When you subsequently sell, your cost basis is the **original cost paid by the previous owner** (or FMV on 1-Apr-2001 if acquired before then). The holding period for classification includes the previous owner's holding period. CII indexation also uses the original purchase date.

STCG on property — how is it taxed?

If you sell within 24 months of purchase, the gain is **STCG** and is taxed at your **income tax slab rate** (added to your total taxable income). This calculator shows ₹0 tax for STCG because the rate depends on your marginal slab. Use the [Income Tax Calculator](/tax/income-tax-calculator/) to compute the actual tax by adding this STCG to your gross income.

Compliance disclaimer

The tax calculations on this page are based on the Income Tax Act, 1961 provisions applicable for the financial year shown. Tax laws change; always verify current provisions and consult a Chartered Accountant for filing decisions. This is educational content, not tax advice.