Property Capital Gains Calculator
The 12.5% flat route against 20% with indexation, and which one costs you less.
- 12.5% on ₹98,00,000.00, no indexation
- ₹12,25,000.00
- 20% on ₹72,40,944.88, cost indexed to ₹75,59,055.12
- ₹14,48,188.98
FY 2026-27. Property acquired before 23 July 2024 and sold after it may be taxed at 12.5% without indexation or 20% with it, whichever is lower — but only for a resident individual or HUF. Indexation uses the Cost Inflation Index, which CBDT notified at 384 for FY 2026-27 (S.O. 3889(E) dated 15 July 2026, under section 72(8)(a)), against 376 the year before and a base of 100 for 2001-02. Indexation is not automatically the better route: it wins only where the holding is long and the appreciation modest. A ₹50 lakh purchase in 2015-16 sold for ₹1.5 crore is cheaper at the flat 12.5%; the same purchase made in 2001-02 and sold for ₹2.2 crore is far cheaper indexed. The relief is a cap on tax payable, not a restatement of the gain — so the figure used for reinvestment relief, for losses and for carry-forward is the without-indexation number shown above, and the indexation route cannot create or enlarge a loss. Reinvestment relief under section 82 (ex-54) is capped at ₹10 crore and requires purchase within one year before or two years after, or construction within three; section 86 (ex-54F) is proportionate to net sale consideration rather than to the gain; section 85 (ex-54EC) bonds are capped at ₹50 lakh across the year of transfer and the following year taken together. Anything not reinvested by the return due date must go into a Capital Gains Account Scheme deposit or the relief is lost.
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Independent · No commissions · No fund-house data — how the numbers are computed
How it works
Selling land or a building held for more than 24 months produces a long-term capital gain. The 2024 Budget cut the rate to 12.5% and withdrew indexation — but left a choice in place for property acquired before 23 July 2024, which may instead be taxed at 20% with indexation if that costs less. The choice is open only to resident individuals and HUFs; non-residents, companies, firms and LLPs get the flat rate.
Indexation is not automatically the better route, which surprises people. It wins only where the holding is long and the appreciation modest. A ₹50 lakh purchase in 2015-16 sold for ₹1.5 crore is cheaper at the flat 12.5%; the same purchase made in 2001-02 and sold for ₹2.2 crore is far cheaper indexed.
One structural point governs everything downstream: the relief is a cap on tax payable, not a restatement of the gain. The gain used for reinvestment relief, for losses and for carry-forward is the without-indexation figure — so the indexation route cannot create or enlarge a loss.
Flat route: 12.5% x (sale - cost - improvements - transfer expenses). Indexed route: 20% x (sale - cost x CII(sale year) / CII(purchase year) - indexed improvements - expenses). You pay the lower of the two.CBDT notified the Cost Inflation Index at 384 for FY 2026-27 via S.O. 3889(E) dated 15 July 2026, against 376 for FY 2025-26, on a base of 100 for 2001-02.
Frequently asked questions
Who can still use indexation on property?
A resident individual or HUF selling land or a building that was acquired before 23 July 2024, where the transfer happens on or after that date. Non-residents are excluded, as are companies, firms and LLPs, and the choice does not extend to any other asset class — shares lost indexation entirely with no grandfathering.
Is indexation always better than the flat 12.5 percent?
No. Indexation only wins when the indexed cost rises enough to bring the gain down by more than the rate difference makes up, which needs a long holding and modest appreciation. Roughly, the indexed gain has to fall below 62.5% of the unindexed one. Property bought in the last decade that has appreciated strongly is usually cheaper at the flat rate.
Can indexation create a loss I can carry forward?
No, and this is a common misunderstanding. The relief operates as a cap on the tax payable, not as a re-computation of the capital gain. Your gain for every other purpose remains the without-indexation figure, so if indexation produces a negative number that loss is simply not available to set off or carry forward.
How much can I shelter by reinvesting?
Section 82, the old section 54, shelters the gain reinvested in one residential house, capped at ₹10 crore, with purchase within a year before or two years after or construction within three. Section 86, the old 54F, applies to other assets and is proportionate to net sale consideration rather than to the gain. Section 85 bonds are capped at ₹50 lakh across the year of transfer and the following one taken together. Anything not reinvested by the return due date must go into a Capital Gains Account Scheme deposit.