🏡 Real Estate Capital Gains Calculator (India)
Selling a property in India? Before you celebrate, make sure you know your capital gains tax liability. Use our free calculator to estimate your long-term capital gains (LTCG) accurately, including indexation, improvement cost, and Section 54 exemptions.
📌 What Is Capital Gain on Real Estate?
Capital gain is the profit earned when you sell a property for more than its purchase cost. It is classified as:
- Short-Term Capital Gains (STCG): Property held for less than 2 years
- Long-Term Capital Gains (LTCG): Property held 2 years or more, taxed at 20% with indexation
🧠 How Does the Calculator Help?
Our Real Estate Capital Gains Calculator provides:
- ✅ Indexed Purchase Cost (using CII)
- ✅ Net Sale Value after deducting expenses
- ✅ Accurate Capital Gains
- ✅ Section 54 Exemption and Tax Payable
- ✅ Support for FMV (Fair Market Value) for pre-2001 purchases
🧮 Example Calculation
Input Fields |
Values |
|---|---|
Purchase Price |
₹50,00,000 |
Purchase Year |
2010 |
Sale Price |
₹1,20,00,000 |
Sale Year |
2024 |
Improvement Cost |
₹5,00,000 |
Sale Expenses |
₹2,00,000 |
CII: 2010 = 711, 2024 = 1737
Indexed Purchase Price = ₹55,00,000 × (1737 / 711) ≈ ₹1,34,31,648
Net Sale Value = ₹1,20,00,000 − ₹2,00,000 = ₹1,18,00,000
Capital Gain = ₹1,18,00,000 − ₹1,34,31,648 = ₹-16,31,648 (Loss – No Tax)
So go ahead and use the moneycontain Real Estate Capital Gains calculator below and find out how much LTCG you have to pay.
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📚 Frequently Asked Questions (FAQs)
❓ What is indexation?
Indexation adjusts your purchase cost to inflation using the Cost Inflation Index (CII), reducing taxable capital gain.
❓ Can I save LTCG tax?
Yes. Under:
- Section 54: Buy another residential property
- Section 54EC: Invest in REC/NHAI bonds within 6 months
❓ Is inherited property taxable?
No tax on inheritance itself. But LTCG applies when you sell. Use original owner’s purchase year for indexation.
❓ Is FMV required for old properties?
Yes. If purchased before 1 April 2001, you can use FMV as your base cost to calculate capital gains.
⚖️ Real Estate vs Stocks vs Gold – Capital Gains Comparison
Feature |
Real Estate |
||
|---|---|---|---|
Holding for LTCG |
2 years |
1 year (listed) |
3 years (physical), 8 yrs (SGB) |
LTCG Tax Rate |
20% with indexation |
10% above ₹1L (no indexation) |
20% with indexation / Nil (SGB) |
Tax Saving Options |
Sec 54, 54EC |
ELSS (indirect) |
SGBs exempt on maturity |
💡 Pro Tips
- ✅ Always input accurate purchase and sale years
- ✅ Keep documents like bills, registry, and bond receipts
- ✅ Include improvement costs & sale expenses
- ✅ Reinvest within deadlines to claim Section 54 exemption
❗ Common Mistakes to Avoid
- ❌ Not using FMV for assets bought before 2001
- ❌ Entering sale value before expenses (use net sale amount)
- ❌ Forgetting Section 54/54EC deadlines
- ❌ Assuming inheritance means no capital gains tax — tax applies on sale!
🧾 Conclusion + Final Checklist
This Real Estate Capital Gains Calculator helps Indian property owners estimate their LTCG and tax liability accurately using indexation and exemption support.
📌 Things to Keep in Mind When Buying or Selling Property in India
-
- ✅ Verify Title & Ownership: Ensure the property is legally owned and has clear, marketable title.
- ✅ Get Encumbrance Certificate: Check that the property is free of legal dues or loans.
- ✅ Use Registered Sale Deed: Always register the sale/purchase with the local registrar office.
- ✅ Include All Costs: Stamp duty, registration fees, brokerage, and legal charges must be accounted for.
- ✅ Calculate Capital Gains Tax: Use the CII and section 54/54EC exemptions before finalizing your return.
- ✅ Save Bills: Keep proof of improvement work, sale expenses, and reinvestment.
- ✅ Reinvest on Time: To claim exemption under section 54, reinvest in a residential property or capital bonds within 6 months.
- ✅ Hire a Tax Professional: Complex cases (like joint ownership, inheritance, commercial use) should be handled by a CA or lawyer.
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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information. All investments are subject to risks, which should be considered prior to making any investments.
Disclaimer: This tool is for educational and estimation purposes only. Always consult a qualified Chartered Accountant or tax advisor for final calculations and tax filing.
