Capital Gains Tax Calculator on Property (2026)

Indexation adjusts your purchase price for inflation using the Cost Inflation Index (CII) published by the government. Formula: Indexed Cost = Purchase Price × (CII of Sale Year / CII of Purchase Year). This reduces your taxable capital gain significantly. For example, a property bought in 2015 for ₹50L and sold in 2025 for ₹1.5Cr has an indexed cost of ~₹71.5L (using CII 254→380), reducing gains from ₹1Cr to ~₹78.5L.

Three main exemptions: (1) Section 54 — Reinvest LTCG into another residential property within 1 year before or 2 years after sale (3 years for construction). (2) Section 54EC — Invest up to ₹50L in capital gain bonds (NHAI, REC, PFC, IRFC) within 6 months. (3) Section 54F — Invest sale proceeds in residential property if you don't own more than one other house. Each has specific conditions and limits.

LTCG (Long Term Capital Gain) applies when property is held for 24+ months. Tax rate: 20% with indexation benefit. STCG (Short Term Capital Gain) applies when held for less than 24 months. The gain is added to your total income and taxed at your applicable slab rate (5-30%). For most taxpayers, LTCG treatment is significantly more tax-efficient.

The CII for 2025-26 is 380 (expected). For 2024-25 it is 363, 2023-24 is 348, 2022-23 is 331. The government notifies CII each year. Our calculator includes the latest CII data for accurate indexation calculations.

Yes. If you sell property and do not claim any exemption (Section 54, 54EC, or 54F), you must pay capital gains tax. For LTCG, that is 20% with indexation. For STCG, it is taxed at your income slab rate. To save tax without buying another property, invest in 54EC bonds (up to ₹50L) within 6 months of sale.