Property capital gains calculator

Last updated

Short- or long-term gain on selling land or a building, with indexation where the law allows it and the tax on a long-term gain, from the official rules for the date of sale.

The value the stamp authority assessed.

Improvements (construction, additions) (optional)

Improvement 1

Improvement 2

Improvement 3

Numbers only; commas are fine. What you enter is used for this calculation only and is not stored.

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Short-term or long-term

Land and buildings are long-term when held for more than the period in the rules recorded for the date of sale (24 months for sales covered here). A short-term gain is added to your income and taxed at your slab rates, so only the gain is shown.

How the gain is worked out

Gain = sale value − selling costs − purchase price and purchase costs − improvements

With indexation, the purchase cost and each improvement are multiplied by the cost inflation index (CII) of the year of sale and divided by the CII of their own year (2001-02 for anything earlier).

  • Sales before 23 July 2024: long-term gains at 20% with indexation.
  • Sales on or after 23 July 2024: 12.5% without indexation; a resident individual or HUF selling land or a building bought before that date can pay the lower of that and 20% with indexation. The calculator shows both and uses the lower.
  • Health and education cess is added; surcharge depends on your total income and is not included.

What needs a professional

  • Exemptions for reinvesting the gain (sections 54, 54EC, 54F) are not applied.
  • If the stamp duty value is higher than the sale price, section 50C can replace the sale price; the calculator shows that figure but does not apply it, because the tolerance band was not verified.
  • Property bought before 1 April 2001 (fair market value option), non-resident sellers, losses and their set-off.

This is an estimate from the figures you enter and the official rules recorded on Finobazaar for the year or date shown. It is not a tax return, a tax demand or professional tax advice, and it may leave out rules that apply to you. Check with the Income Tax Department's own utilities or a qualified tax professional before you file or pay.

Frequently asked questions

Which formula does the property capital gains calculator use?

Gain = sale value − selling costs − cost of purchase − improvements; with indexation each cost × CII of the year of sale ÷ CII of its year
The explanation below the calculator sets out each step and what the result leaves out.

What details do I need for the property capital gains calculator?

You need: date of purchase, date of sale, purchase price and sale price. Optional: stamp duty, registration and other purchase costs, improvements (construction, additions), stamp duty value on the sale and selling costs, such as brokerage.

Where do the tax rates and limits come from?

From official Income Tax Department sources, recorded on Finobazaar as rule sets with the source, the date they were checked and an approval by a second person. Each result lists the rules and links used. A year or date whose rules have not been verified gets no result rather than another year's rules.

Is the result my final tax?

No. It is an estimate from the figures you enter and the rules recorded for the year or date shown. It is not a tax return or professional advice and may leave out rules that apply to you; the calculator lists what it does not cover.

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