Capital Gains Tax Calculator 2025 - Property Sale Tax After Budget 2024 Changes

Calculate Capital Gains Tax

Enter property details for instant tax calculation with 2024 Budget rules

About Capital Gains Tax Calculator

Our capital gains tax calculator helps property sellers calculate tax on property sale with Budget 2024 changes. The property sale tax calculator compares old rules (20% tax with indexation) vs new rules (12.5% without indexation). This LTCG calculator property covers residential property, commercial property, agricultural land, and plots. Budget 2024 removed indexation benefit for properties purchased after July 23, 2024, while reducing LTCG tax rate from 20% to 12.5%. For properties bought before July 23, 2024, you can choose between old and new tax regimes.

Property Type *

Purchase Date * Important: Determines indexation eligibility

Sale Date * When property was sold

Purchase Price (₹) * Original purchase cost

Sale Price (₹) * Current sale price

Improvement Cost (₹) Renovation, additions made

Brokerage/Transfer Expense (₹) Broker fees, registration charges

Plan to Reinvest? For tax exemption calculation

Budget 2024 Changes: Indexation benefit removed for properties purchased after July 23, 2024. LTCG tax reduced from 20% to 12.5%. Properties bought before July 23, 2024 can choose between old (20% with indexation) or new (12.5% without indexation) regime - whichever is beneficial. Our calculator automatically compares both options.

Capital Gains Tax Information 2024-25

Budget 2024 Changes

Purchase before July 23, 2024: Can choose old or new regime
Purchase after July 23, 2024: Only new regime (no indexation)
Old regime: 20% LTCG with indexation
New regime: 12.5% LTCG without indexation
Holding period: Remains 24 months for LTCG

How Indexation Worked (Old System)

Adjusted purchase price for inflation using CII
CII for FY 2024-25: 363
Reduced taxable gains significantly
Example: ₹50L purchase in 2010 → ₹1.1Cr indexed value
Available only for properties bought before July 23, 2024

Tax Exemptions Available

Section 54: Reinvest in residential property (within 2 years)
Section 54EC: Invest in specified bonds (₹50L limit)
Section 54F: Sell non-residential, buy residential
Section 54B: Agricultural land exemption
Must invest: Within specified timeframes

Short Term vs Long Term

STCG: Held less than 24 months
LTCG: Held 24+ months
STCG rate: As per income tax slab
LTCG rate: 12.5% (new) or 20% (old)
Inherited property: Previous owner's holding counts

Deductible Expenses

Original purchase price
Stamp duty and registration
Brokerage and legal fees
Home loan interest (during construction)
Improvement costs (renovations, additions)
Transfer expenses when selling

Required Documents

Sale deed and purchase deed
Stamp duty receipts
Home loan statements
Improvement/renovation bills
Brokerage payment receipts
Form 16A for TDS deducted

Frequently Asked Questions

Budget 2024 Changes

Budget 2024 removed indexation benefit for properties purchased after July 23, 2024. LTCG tax rate reduced from 20% to 12.5%. Properties bought before July 23, 2024 can choose between old regime (20% with indexation) or new regime (12.5% without indexation) - whichever results in lower tax.

You can choose! Calculate tax both ways and pay whichever is lower: (1) Old regime - 20% tax after indexation adjustment, or (2) New regime - 12.5% without indexation. For properties bought many years ago, old regime with indexation usually results in lower tax.

Indexation is removed ONLY for properties purchased after July 23, 2024. For properties purchased before this date, you still have the option to use indexation with 20% tax rate. The government gave this choice to protect existing property owners from sudden tax increases.

Calculation Methods

Capital Gains = Sale Price - (Purchase Price + Improvement Cost + Transfer Expenses). For old regime, purchase price is indexed using Cost Inflation Index. For new regime, no indexation applied. Then respective tax rate (20% or 12.5%) is applied to calculate final tax.

CII is used to adjust purchase price for inflation. Indexed Cost = (Purchase Price × CII of sale year) / CII of purchase year. For FY 2024-25, CII is 363. For FY 2023-24 it was 348. This significantly reduces taxable gains in old regime.

You can deduct: original purchase price, stamp duty & registration, brokerage fees paid, legal expenses, home loan interest during construction, improvement/renovation costs, and transfer expenses when selling. Keep all bills and receipts as proof for tax filing.

Tax Exemptions

Section 54: If you sell residential property and reinvest capital gains in another residential property within 2 years (or 1 year before sale or 3 years for under-construction), you get full exemption on reinvested amount. Maximum one residential property can be purchased.

Section 54EC allows exemption if you invest capital gains in specified bonds (NHAI, REC, PFC) within 6 months of sale. Maximum investment limit is ₹50 lakh. Bonds have 5-year lock-in period. Interest earned is taxable. Popular option for partial exemption.

Section 54B: If you sell agricultural land and purchase another agricultural land within 2 years, you can claim exemption. Both lands must be used for agricultural purposes. Must be sold by individual or HUF, not companies or firms.

Short vs Long Term

Short Term Capital Gains (STCG): Property held less than 24 months. Taxed as per your income tax slab (up to 30%). Long Term Capital Gains (LTCG): Property held 24+ months. Taxed at 12.5% (new) or 20% with indexation (old regime).

For inherited property, holding period of previous owner (deceased) is added to yours. If parent held property for 10 years before gifting/inheritance, and you hold for 5 years, total holding is 15 years. This helps qualify for LTCG rates.

Selling within 24 months = Short Term Capital Gains. No indexation benefit available. Gains added to your income and taxed as per your tax slab (5% to 30% based on total income). No option to use 12.5% or 20% LTCG rates.

Property Types

No, same rules apply for commercial and residential properties. Holding period is 24 months for LTCG classification. Same tax rates apply (12.5% new or 20% old). However, Section 54 exemption (buy residential) not available - must use Section 54F or 54EC for exemption.

Agricultural land within specified urban limits is taxable. Rural agricultural land used for farming may be exempt. Distance limits: 8 km from municipality (population >10L), 6 km (1-10L), 2 km (<1L). Check local municipal limits before claiming exemption.

Vacant plots follow same capital gains rules. 24 months holding for LTCG. Budget 2024 changes apply identically. No construction or improvement cost to deduct unless you did site development, fencing, etc. Section 54F can be used for exemption.

Tax Payment & Filing

TDS is deducted at source if sale price exceeds ₹50 lakh. Buyer deducts 1% TDS and deposits to government. You must file ITR before July 31 of next assessment year. Balance tax (if any) should be paid via advance tax in quarterly installments during the financial year.

Use ITR-2 if you have capital gains from property sale. ITR-1 cannot be used if you have capital gains income. Fill Schedule CG (Capital Gains) with complete details of purchase, sale, expenses, and exemptions claimed. Keep all supporting documents ready.

If TDS deducted (1% of sale price) is more than your actual capital gains tax liability, you'll get refund when you file ITR. This commonly happens when you claim exemptions under Section 54/54EC or have deductible expenses. Refund typically takes 2-6 months after ITR processing.