Being Real Estate

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Capital Gains Tax

Work out the tax on selling your property, and which of the two LTCG methods costs you less.

₹50,00,000
₹1,20,00,000

Long-term capital gains tax (lower of two)

₹8,75,000

Gross gain
₹70,00,000
Indexed cost
₹74,01,575
20% with indexation
₹9,19,685
12.5% without indexation
₹8,75,000
Cheaper option: 12.5% flat
₹8,75,000

Post Budget 2024, property bought before 23 Jul 2024 can pick the lower of 20% with indexation or 12.5% without. Excludes surcharge/cess and Section 54/54EC reinvestment exemptions. Verify with a CA.