Property held for more than 24 months gives a long-term gain. Since 23 July 2024 the rate is 12.5% without indexation; a resident individual or HUF selling property bought before that date can choose 20% with indexation if it costs less. Everything runs in your browser; nothing you type is saved or sent.
Capital gains on selling a property
Long-term after 24 months; the rate changed on 23 July 2024.
₹40 lakh
₹90 lakh
₹1 lakh
Estimated tax, 20% with indexation (property bought before 23 July 2024)
₹6,19,578
12.5% without indexation: gain ₹49,00,000, tax ₹6,37,000
20% with indexation (property bought before 23 July 2024): gain ₹29,78,740, tax ₹6,19,578
Includes 4% cess; surcharge for high incomes is not included.
Section 112 of the Income-tax Act, 1961 as amended by the Finance (No. 2) Act, 2024 (for transactions before 1 April 2026; the Income-tax Act, 2025 applies from then, with renumbered sections); Cost Inflation Index as notified by CBDT. For property bought before 1 April 2001, use its fair market value on that date as the cost. Exemptions under sections 54 and 54EC (reinvesting in a home or in specified bonds) can reduce the tax to nil. An estimate, not tax advice: confirm with a chartered accountant.
Sources: Sections 48, 54, 54EC and 112 of the Income-tax Act, 1961, as amended by the Finance (No. 2) Act, 2024 (for transactions before 1 April 2026; the Income-tax Act, 2025 applies from then, with renumbered sections); Cost Inflation Index notified by CBDT.
Common questions
What is the capital gains tax on property after the 2024 budget?
Long-term gains on property sold on or after 23 July 2024 are taxed at 12.5% without indexation. Resident individuals and HUFs selling property bought before 23 July 2024 can instead pay 20% with indexation, whichever is lower.
When is a property gain long-term?
When the property was held for more than 24 months before the sale.
How can I avoid capital gains tax on a property sale?
Section 54 exempts the gain if it is invested in another residential house within the set time; section 54EC exempts up to ₹50 lakh invested in specified bonds within six months.