Calculator for Capital Gains Tax on Sale of Property
Use this free calculator for capital gains tax to compare 12.5% without indexation and 20% with indexation for eligible property. It uses the official CII table up to FY 2026-27 and instantly shows the lower tax.
Property bought before 1 April 2001? Enter its Fair Market Value as on 1 April 2001 as the purchase price and set the purchase date in FY 2001-02. Indexation then starts from CII 100.
How to Calculate Capital Gains Tax on Sale of Property
Step 1: Check the holding period.
Property held for more than 24 months gives long-term capital gains (LTCG). Property held for 24 months or less gives short-term capital gains (STCG).
STCG is taxed at your income tax slab rate.
Step 2: Start with the sale price. Subtract transfer expenses such as brokerage and legal fees.
Step 3: Subtract the cost of the property. Use either the plain purchase price or the indexed purchase price, depending on the method.
Step 4: Apply the tax rate to the gain. Then add 4% health and education cess.
For a property bought before 23 July 2024, a resident individual or HUF can compute the tax both ways.
The lower tax can then be paid.
Neither method is always better. Indexation usually helps when the property was held for many years and prices rose slowly.
The flat 12.5% method usually helps on a recent purchase. It can also help when the property value jumped sharply.
Worked Example – Both Methods Compared
Suppose you bought a flat in FY 2010-11 for ₹40,00,000.
You sell it in FY 2026-27 for ₹1,50,00,000. Transfer expenses are ₹1,00,000.
The CII was 167 in 2010-11. It is 384 in 2026-27.
| Step | 12.5% without Indexation | 20% with Indexation |
|---|---|---|
| Cost used | ₹40,00,000 | ₹40,00,000 × 384 / 167 = ₹91,97,605 |
| Taxable gain | ₹1,09,00,000 | ₹57,02,395 |
| Tax + 4% cess | ₹14,17,000 | ₹11,86,098 |
Here, indexation saves ₹2,30,902. One reason is the long holding period of 16 years.
Run your own numbers in the calculator for capital gains above.
For a property bought only 3-4 years ago, the answer is usually the opposite.
Capital Gains Tax Rates in India – FY 2026-27
| Asset | Long-Term if Held Over | LTCG Tax | STCG Tax |
|---|---|---|---|
| House, flat, plot (land or building) | 24 months | 12.5% without indexation, or 20% with indexation if bought before 23 Jul 2024 – whichever is lower | Slab rate |
| Listed shares (STT paid) | 12 months | 12.5% on gains above ₹1.25 lakh per year | 20% |
| Equity mutual funds | 12 months | 12.5% on gains above ₹1.25 lakh per year | 20% |
| Gold and jewellery | 24 months | 12.5% without indexation | Slab rate |
| Debt mutual funds and other assets | 24 months | 12.5% without indexation | Slab rate |
4% health and education cess applies on top of the tax in every case.
Surcharge can also apply at high incomes. It is capped at 15% on capital gains.
This calculator does not add surcharge. If your total income is above ₹50 lakh, your final tax will be somewhat higher.
Capital Gains on Shares and Mutual Funds
Shares are often bought on different dates and at different prices.
In that case, the purchase value should be based on the correct average cost. Our Share Average Calculator can help you calculate that average before you use the equity tab above.
Mutual fund investments made through SIP also involve several purchase dates.
The buy and sell values show the total gain, but they do not show the annualised return. You can check that return separately with our XIRR Calculator.
Indexation and the Cost Inflation Index (CII)
Indexation increases your purchase price to match inflation.
This means tax is paid on the real gain. It is not paid on the part that only reflects rising prices.
The increase uses the Cost Inflation Index. The CBDT notifies this number every year.
The formula is simple:
Since 23 July 2024, indexation survives in only one common situation.
A resident individual or HUF can use it as the 20% option when selling land or a building bought before that date.
Indexation is no longer available on gold, debt funds or shares.
Improvement costs are indexed in the same way. The calculation starts from the year in which the improvement was made.
Cost Inflation Index Table – 2001-02 to 2026-27
| Financial Year | CII |
|---|---|
| 2001-02 (Base year) | 100 |
| 2002-03 | 105 |
| 2003-04 | 109 |
| 2004-05 | 113 |
| 2005-06 | 117 |
| 2006-07 | 122 |
| 2007-08 | 129 |
| 2008-09 | 137 |
| 2009-10 | 148 |
| 2010-11 | 167 |
| 2011-12 | 184 |
| 2012-13 | 200 |
| 2013-14 | 220 |
| Financial Year | CII |
|---|---|
| 2014-15 | 240 |
| 2015-16 | 254 |
| 2016-17 | 264 |
| 2017-18 | 272 |
| 2018-19 | 280 |
| 2019-20 | 289 |
| 2020-21 | 301 |
| 2021-22 | 317 |
| 2022-23 | 331 |
| 2023-24 | 348 |
| 2024-25 | 363 |
| 2025-26 | 376 |
| 2026-27 | 384 |
CII for FY 2026-27 is 384. It was notified through CBDT Notification No. 85/2026.
For a property bought before 2001-02, use its Fair Market Value as on 1 April 2001 as the cost.
Use 100 as the purchase-year CII.
Is Capital Gains Tax 12.5% or 20%? Which One Applies to You
Both rates exist at the same time.
The rate you pay depends on when the property was bought.
If you bought on or after 23 July 2024, there is no choice. LTCG is taxed at 12.5% without indexation.
If you bought before 23 July 2024, you may have a choice. This applies to a resident individual or HUF.
First, calculate 12.5% on the plain gain. Then calculate 20% on the indexed gain.
Pay the lower tax.
Companies, firms and non-residents do not get this choice.
This capital gains tax calculator makes the comparison automatically. It also marks the cheaper method in the result.
How to Save Capital Gains Tax on Sale of Property
Section 54 – Buy Another Residential House
Sell a residential house and buy another residential house to claim this exemption.
The new house can be bought within 2 years after the sale. It can also be bought 1 year before the sale.
For construction, the time limit is 3 years. The exemption is capped at ₹10 crore.
Section 54EC – Invest in Specified Bonds
Invest up to ₹50 lakh of the gain in NHAI, REC, PFC or IRFC bonds.
The investment must be made within 6 months of the sale.
These bonds are locked in for 5 years.
Section 54F – Invest the Sale Amount in a House
This section applies when an asset other than a residential house is sold.
The full sale amount must be invested in a residential house to claim the full exemption.
If only part of the amount is invested, the exemption is proportionate.
Enter the exemption you plan to claim in the calculator above. The result will show the tax after that exemption.
Plan the Sale Proceeds After Paying Tax
First, keep the estimated tax amount separate.
The remaining money can then be planned according to when you will need it.
Short-Term Deposit Options
If the next purchase is a few months away, the money may stay in a bank deposit.
Our FD Calculator shows the interest and maturity value for that period.
A post office time deposit is another option for a fixed period.
You can compare its return with our Post Office FD Calculator.
If you only want the interest earned on a specific amount, use our Interest Calculator.
Monthly Income Options
Some sellers want regular income from the remaining amount.
Our Post Office MIS Calculator shows the monthly payout from a Post Office Monthly Income Scheme deposit.
Senior citizens have another government-backed option.
Our SCSS Calculator shows the quarterly interest payable under the Senior Citizens Savings Scheme.
If the money is invested in mutual funds instead, monthly withdrawals need a separate check.
Our SWP Calculator estimates how long the invested amount can support those withdrawals.
Capital Gains Tax Calculator (FAQ)
Is capital gains tax 12.5% or 20%?
For property bought on or after 23 July 2024, long-term capital gains tax is 12.5% without indexation.
If you bought before that date and are a resident individual or HUF, you may choose 20% with indexation instead, whichever gives lower tax. The calculator compares both for you.
How do I calculate my capital gains tax?
Subtract the purchase cost and transfer expenses from the sale price to get the gain.
For property, compute the gain once with the plain purchase price and once with the indexed price, apply 12.5% and 20% respectively, add 4% cess, and pay the lower amount if you qualify for the choice.
What is the formula for calculating capital gains tax?
Capital Gains = Sale Price − Transfer Expenses − Cost of Purchase − Cost of Improvement.
With indexation, each cost is first multiplied by CII of the sale year and divided by CII of its own year. Tax is then charged on the gain at 12.5% or 20%, plus 4% cess.
How is capital gains tax calculated on sale of property in India?
Property held over 24 months is taxed as long-term gains and 24 months or less as short-term gains at your slab rate.
Long-term gains are taxed at 12.5% without indexation, or at 20% with indexation if the property was bought before 23 July 2024 and that gives lower tax.
What is indexation in capital gains?
Indexation raises your purchase price for inflation using the Cost Inflation Index, so tax is paid only on the real profit.
For example, a property bought for ₹40 lakh in 2010-11 has an indexed cost of about ₹91.98 lakh in 2026-27, because the CII rose from 167 to 384.
How can I save capital gains tax on property sale?
You can claim exemption under Section 54 by buying another house, under Section 54EC by investing up to ₹50 lakh in specified bonds within 6 months, or under Section 54F in some cases.
First use the lower-of-two-methods choice, which itself saves tax on older properties without any investment.