When you sell land or a building you have held for the long term, the profit is taxed as long-term capital gain. This calculator gives an indicative figure at the current flat rate of 12.5% (plus 4% health & education cess) on the gain, for a resident seller, without indexation.
Enter the details
Estimate the LTCG tax
Purchase price, plus cost of improvement and transfer expenses.
Property acquired on or before 22 July 2024 may optionally use the older 20%-with-indexation method if it works out lower.
Estimated LTCG tax (incl. 4% cess)
₹0
Enter the sale price and cost above to see the estimate.
Indicative only — verify with us. This shows the flat 12.5% figure only. It does not compute indexation, exemptions (such as Sections 54, 54F or 54EC), the actual cost where inheritance or gift is involved, or any surcharge. The real liability can be materially lower once these are applied.
How this works
For land or a building, the holding period that makes a gain "long-term" is more than 24 months. The taxable gain is broadly the sale price less the cost of acquisition (including improvement and transfer costs). Under the current law the long-term gain is taxed at a flat 12.5% without indexation, and a 4% cess is added on top of the tax.
- Held more than 24 months: long-term — the 12.5% flat rate applies.
- Held 24 months or less: short-term — the gain is added to your income and taxed at your slab rates. This calculator does not compute the slab-rate figure; please contact us for that.
- Cess: a 4% health & education cess is charged on the tax.
The 20%-with-indexation option for older property
If the property was acquired on or before 22 July 2024, a resident individual or HUF has a choice: pay 12.5% without indexation, or fall back to the earlier method of 20% with indexation — and pay whichever is lower. Indexation lifts the cost using the Cost Inflation Index, which reduces the taxable gain, so for property bought many years ago the 20%-with-indexation figure is often the lower one.
This calculator does not compute the indexed figure, because that needs the Cost Inflation Index for the relevant years and the exact acquisition details. Where your property is from that earlier period, the indexation route may save tax — we can compute it for you and tell you which method is better.
Before you rely on this
Capital-gains tax on property is one of the areas where exemptions make the biggest difference. Reinvesting in a residential house (Sections 54 / 54F) or in specified bonds (Section 54EC) can reduce or defer the tax substantially. Inherited and gifted property carries the previous owner's cost and holding period. None of that is reflected here — treat the output as a first look only.
Selling land or a building?
Dixit Legal can compute your exact capital-gains liability under both methods, check the exemptions you can claim, and advise on reinvestment to reduce the tax — before you sign.
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