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Capital Gains Tax Calculator on Property (2026)
Calculate LTCG and STCG tax on property sale with indexation benefit, CII data, and Section 54/54EC exemption guidance.
Transaction Details
Tax Calculation
Tax Savings Calculator (Section 54 / 54EC / 54F)
Enter reinvestment amounts to see how much tax you can save. These exemptions apply only to long-term capital gains.
Exemptions (Section 54)
You can save tax on Long Term Capital Gains by reinvesting the gain amount into another residential property within:
- 1 year before the sale
- 2 years after the sale (for purchase)
- 3 years after the sale (for construction)
Or by investing in 54EC Capital Gain Bonds (max ₹50 Lakhs) within 6 months.
Capital Gains Exemption Comparison: Section 54 vs 54EC vs 54F
| Section | Eligible Asset Sold | Where to Invest | Max Exemption | Lock-in Period | Time Limit to Invest |
|---|---|---|---|---|---|
| Section 54 | Residential house property | Another residential house property | No limit (full capital gains exempt) | 3 years — cannot sell new property | 1 year before or 2 years after sale; 3 years if constructing |
| Section 54EC | Any land or building (long-term) | NHAI, REC, PFC, or IRFC bonds | ₹50 lakh (per financial year) | 5 years — bonds cannot be sold/pledged | Within 6 months from the date of sale |
| Section 54F | Any long-term capital asset (not a residential house) | Residential house property | No limit (proportional — based on reinvested amount vs net sale proceeds) | 3 years — cannot sell new property | 1 year before or 2 years after sale; 3 years if constructing |
How Indexation Works
Indexation is a method to adjust the purchase price of an asset for inflation over the holding period. The government publishes a Cost Inflation Index (CII) each financial year. By inflating the original cost to current-year terms, indexation reduces the taxable capital gain and, consequently, your tax liability.
Formula:
Indexed Cost of Acquisition = Purchase Price × (CII of Sale Year ÷ CII of Purchase Year)Example with real numbers:
- Purchase price in FY 2010-11: ₹30,00,000 | CII = 167
- Sale price in FY 2024-25: ₹1,20,00,000 | CII = 363
- Indexed cost = ₹30,00,000 × (363 ÷ 167) = ₹65,20,958
- Capital gain without indexation = ₹90,00,000
- Capital gain with indexation = ₹54,79,042 — a reduction of ₹35,20,958
- Tax saved at 20% = approximately ₹7,04,192
As this example shows, indexation can reduce your taxable gain by nearly 40% over a 14-year holding period. The longer you hold the property and the higher inflation rises, the greater the indexation benefit. This is why long-term capital gains on property are taxed at a flat 20% with indexation — a significantly lower effective rate than income tax slabs for most taxpayers.
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