Key Takeaway
Long-term capital gains on property (held >24 months) are taxed at 20% after indexation. You can save this tax by reinvesting gains in another property (Section 54) or in NHAI/REC bonds (Section 54EC).
Property Capital Gains Calculator
Estimate your Long-Term Capital Gains (LTCG) tax using cost indexation benefits.
Tax Summary
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Frequently Asked Questions
What is Long-Term Capital Gains (LTCG) on property?
If you hold a property for more than 24 months before selling, the profit is considered LTCG and is taxed at 20% with the benefit of indexation, which adjusts the purchase price for inflation.
How does indexation help save tax?
Indexation inflates your original purchase price using the Cost Inflation Index (CII) published by the government. This reduces your actual taxable profit, significantly lowering your tax liability.
Can I completely avoid capital gains tax on property?
Yes, under Section 54, you can claim exemption if you reinvest the LTCG amount into buying or constructing another residential property within specified timelines, or invest in specified bonds under Section 54EC.
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