# Capital Gain Calculator on Property Sale: 12.5% vs Indexed > Capital gain calculator on property sale for FY 2026-27: compare 12.5% without and 20% with indexation, with circle rate rules and 54 exemptions. Source: https://trykosh.com/tools/property-capital-gains-calculator Free tool - Capital gains # Capital gains calculator on property sale Selling a flat, house or plot? Kosh works out the gain both ways the law now allows, picks the lower tax, and accounts for the circle rate, improvements and section 54 reinvestment. Rules checked 25 October 2026Free - no sign-upRuns in your browser Capital gains tax INR 10,56,640 Lower option: 20% with indexation Your total income is above INR 50 lakh, so surcharge also applies (capped at 15% on equity gains and other capital gains). It isn't included here. Without indexation (12.5%)**INR 10,79,000** With indexation (20%)**INR 10,56,640** Saved by choosing**INR 22,360** Sale price INR 1,20,00,000 − Selling expenses INR 2,00,000 − Indexed cost (CII 384 / 200) INR 67,20,000 Long-term capital gain INR 50,80,000 LTCG tax at 20% INR 10,16,000 \+ Health and education cess (4%) INR 40,640 Tax because of this gain INR 10,56,640 The two ways to compute it 12.5%, no indexation 20%, indexed Net sale value INR 1,18,00,000 INR 1,18,00,000 Cost INR 35,00,000 INR 67,20,000 Improvements INR 0 INR 0 Long-term gain INR 83,00,000 INR 50,80,000 54 / 54EC exemption INR 0 INR 0 Tax incl. cess INR 10,79,000 INR 10,56,640 Bought before 23 July 2024: as a resident individual or HUF you pay the lower of the two. An indexed loss can't be carried forward. ## Upload your statement and Kosh does this for you. Upload your statements and Kosh keeps a running estimate of the tax on your gains, so March holds no surprises. [Start free](/signup?via=tool-property-capital-gains-calculator) ## How the property capital gains calculator works Property becomes long-term after 24 months. A short-term gain is added to your income and taxed at slab rates. For a long-term gain, the calculator starts from the sale price, or the stamp duty value if that is more than 110% of your agreed price (section 50C), and subtracts brokerage and legal costs. From 23 July 2024 the standard rule is 12.5% on the long-term gain with no indexation. But resident individuals and HUFs who bought land or a building before 23 July 2024 can choose the older method instead: 20% on the gain after indexing the cost with the Cost Inflation Index. Kosh computes both and uses the lower tax. Indexed cost is your purchase cost x CII of the sale year / CII of the purchase year. For FY 2026-27 the CII is 384. Improvements (an extension, a new floor) are indexed from the year you spent on them. For property bought before 1 April 2001, enter its fair market value on that date as cost, and the 2001-02 index of 100 is used. If you reinvest in another house under section 54 or in 54EC bonds, enter the exempt amount and it comes off the gain under each method. Indexation tends to win for property held a long time in slow-growing markets; 12.5% tends to win where prices have risen much faster than inflation. Indexed gain = sale value − cost x (CII sale year / CII purchase year) Option A 12.5% x (sale − cost − improvements) Option B 20% x indexed gain (bought before 23 July 2024) CII FY 2026-27 384 ## Worked example: Sunita sells a Pune flat bought in 2009 Sunita, who earns INR 18 lakh, bought a flat in Pune for INR 28 lakh in August 2009 (CII 148), added a room for INR 3 lakh in FY 2014-15 (CII 240), and sold it for INR 1.1 crore in July 2026, paying INR 1.5 lakh in brokerage. Without indexation her gain is INR 77.5 lakh and the tax INR 10,07,500. With indexation her cost rises to about INR 77.45 lakh, the gain falls to INR 31.05 lakh, and 20% tax with cess is INR 6,45,868. She saves INR 3,61,632 by choosing indexation. Capital gains tax INR 6,45,868 Lower option: 20% with indexation Without indexation (12.5%)**INR 10,07,500** With indexation (20%)**INR 6,45,868** Saved by choosing**INR 3,61,632** Sale price INR 1,10,00,000 − Selling expenses INR 1,50,000 − Indexed cost (CII 384 / 148) INR 77,44,865 Long-term capital gain INR 31,05,135 LTCG tax at 20% INR 6,21,027 \+ Health and education cess (4%) INR 24,841 Tax because of this gain INR 6,45,868 Bought before 23 July 2024: as a resident individual or HUF you pay the lower of the two. An indexed loss can't be carried forward. [Load this example into the calculator ->](?buyDate=2009-08-20&sellDate=2026-07-10&cost=2800000&improvement=300000&impFy=2014-15&sale=11000000&sdv=10500000&expenses=150000#calculator) ## Good to know - The buyer deducts 1% TDS (section 194-IA) when the price is INR 50 lakh or more. Make sure it shows in your Form 26AS before you file. - An indexed loss can't be set off or carried forward under the 20% option. If indexation turns a gain into a loss, you simply pay no tax. - Keep the sale deed, purchase deed, stamp duty receipts and bills for improvements. Repairs and maintenance don't count as improvements. - Non-residents can't use the indexation option for property bought before 23 July 2024; they pay 12.5% without indexation, with TDS deducted by the buyer. - If the circle rate is above your price by more than 10%, the circle rate becomes the sale value. You can ask for a valuation by the Valuation Officer if you dispute it. ## Frequently asked questions How is capital gains tax on property calculated in FY 2026-27? For property held over 24 months, the gain is taxed at 12.5% without indexation. If you're a resident individual or HUF and bought before 23 July 2024, you may instead pay 20% on the indexed gain, whichever is lower. Property held 24 months or less is taxed at your slab rate. Is indexation still allowed on property? Only as an option for land or buildings acquired before 23 July 2024 and sold by resident individuals or HUFs. For property bought on or after that date, and for all other assets, indexation is gone. How can I save capital gains tax on selling a house? Reinvest the gain in another residential house in India under section 54 (within 1 year before or 2 years after, or construct within 3 years), or put up to INR 50 lakh into 54EC bonds within 6 months. Unused amounts can be parked in the Capital Gains Account Scheme before the ITR due date. What if I sell below the circle rate? If the stamp duty value is more than 110% of your sale price, the stamp duty value is treated as your sale consideration for capital gains. The buyer may also be taxed on the difference as income. Does the cost include stamp duty and registration? Yes. The cost of acquisition includes the price plus stamp duty, registration charges and brokerage you paid when buying. Home-loan interest already claimed as a deduction can't be added to cost. ## Sources and assumptions - [Income Tax Department](https://www.incometax.gov.in/) - [CBDT notification on Cost Inflation Index](https://incometaxindia.gov.in/) Rules and rates last checked on 25 October 2026. Results are estimates for planning and education, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.