Property & Land Capital Gains Calculator
Work out the capital gains tax on the sale of property, land or a building. It compares 12.5% without indexation against 20% with indexation, applies the government's Cost Inflation Index to find your indexed cost, and shows which option leaves you with less tax. Runs in your browser; nothing is uploaded.
A worked example
Say you bought a plot in 2010-11 for Rs 40,00,000 and sell it in 2026-27 for Rs 1,50,00,000, after Rs 1,00,000 of transfer expenses. Without indexation, the gain is a flat Rs 1,09,00,000, taxed at 12.5% plus cess for about Rs 14,17,000. With indexation, the Cost Inflation Index turns your Rs 40,00,000 cost into about Rs 91,97,605 in today's terms (384 divided by 167, the index for 2026-27 over 2010-11), which shrinks the taxable gain to about Rs 57,02,395 and, taxed at 20% plus cess, comes to about Rs 11,86,098. Here indexation wins by roughly Rs 2,30,900, which is why the calculator always checks both and shows you the lower one.
Understanding the calculation
- Indexed cost
- Cost multiplied by (CII of the year of sale divided by CII of the year of purchase). Improvements are indexed from the year each was made. Costs before 2001-02 are not indexed separately; a property bought earlier starts from its 1 April 2001 value.
- Why two options
- Indexation helps most when you held the property for many years, because the inflation adjustment can be larger than the difference between 20% and 12.5%. For a recent purchase, the flat 12.5% is usually lower. The calculator shows both so you can see the gap.
- Short-term gains
- Sold within 24 months, the gain is added to your income and taxed at your slab rate, with no indexation. Enter your marginal slab rate; the real tax also depends on the rest of your income.
- What is not included
- Surcharge (capped at 15% on long-term gains), any set-off of unused basic exemption for resident individuals, and checking whether an exemption you enter is actually available.
Common questions
How is long-term capital gain on property taxed now?
For land or a building sold on or after 23 July 2024, long-term capital gain is taxed at 12.5% without indexation. Resident individuals and HUFs who acquired the property before 23 July 2024 can instead choose 20% with indexation, whichever gives the lower tax. This calculator works out both and shows the lower one.
When does property count as long-term?
If you hold land or a building for more than 24 months before selling it, the gain is long-term. Sold within 24 months, it is short-term and added to your income, taxed at your slab rate, with no indexation.
What is indexation and the Cost Inflation Index?
Indexation raises your purchase cost to account for inflation, so you are taxed on the real gain. The indexed cost is your cost multiplied by the Cost Inflation Index (CII) of the year of sale divided by the CII of the year you bought. The government-notified CII is 100 for 2001-02 and 384 for 2026-27, and the full table is built into this calculator.
What if I bought the property before April 2001?
You may take either your actual cost or the fair market value on 1 April 2001 as your cost of acquisition, and indexation then starts from 2001-02, when the index is 100. This calculator uses the higher of the two, since that lowers your gain, and shows the extra field when your purchase date is before April 2001.
Who can choose the 20% with indexation option?
Only resident individuals and HUFs, and only for land or buildings acquired before 23 July 2024. Property bought on or after that date, or sold by companies, firms or non-residents, is taxed at 12.5% without indexation. Sales before 23 July 2024 fall under the older rule of 20% with indexation.
How can I reduce or exempt the tax on the gain?
Sections 54, 54EC and 54F can exempt all or part of the gain if you reinvest in another residential house or in specified bonds within the prescribed time, subject to conditions and limits. This calculator only subtracts the amount you enter as an exemption and does not check eligibility, so confirm the rules with a Chartered Accountant before relying on it.
What if the stamp duty value is higher than my sale price?
The tax law can treat the stamp duty value as your sale price when it is higher than the price you actually received by more than a permitted margin. If that applies to you, enter the stamp duty value as the sale price here, and confirm the details with a Chartered Accountant.
Which tax year and law does this cover?
It uses the cost inflation index and the 12.5% or 20% rules as published for sales up to and including the 2026-27 year. Sales from 1 April 2026 fall under the Income-tax Act, 2025, which we understand carried these rules over with different section numbers, so confirm the current position before filing.