What is the LTCG tax rate on property after the 2024 Budget?

The Budget 2024-25 changed the LTCG rate to 12.5% without indexation. For properties bought before July 23, 2024, taxpayers can choose between 12.5% without indexation and 20% with indexation, whichever is lower.

How can I avoid capital gains tax on property sale?

Under Section 54, reinvest the capital gains in another residential property within 2 years of sale. Under Section 54EC, invest up to Rs 50 lakh in government-specified bonds within 6 months of the sale date.

Is capital gains tax applicable on inherited property?

Receiving inherited property does not attract capital gains tax. But when you sell it, tax will apply. The holding period starts from when the original owner first acquired the property.

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Free Tool 2026

Capital Gains Tax Calculator on Property Sale

Q: How much tax do I pay when selling a property in India?

If held for 24 months or more, LTCG tax of 12.5% applies on the profit. If held for less than 24 months, the gain is added to your income and taxed at your income slab rate.

Q: Does selling a property require reporting to income tax?

Yes. Properties sold above Rs 30 lakh require TDS at 1% under Section 194IA. The seller must also report the capital gain in their income tax return for that financial year.

Estimate LTCG or STCG tax when you sell a property in India. Enter your purchase and sale details to get an instant calculation based on current 2026 tax rules.

LTCG at 12.5% STCG as per slab Section 54 Exemption Info Indexation Option

Enter Property Details

Purchase Price (₹)Original amount paid for the property

Sale Price (₹)Amount you are selling or plan to sell for

Year of PurchaseYear in which you bought the property

Year of SaleYear in which you are selling

Improvement Cost (₹) - optionalMajor renovation or construction cost added

Sale Expenses (₹) - optionalBrokerage, legal fees, transfer charges

This is an estimate for planning purposes. Actual tax depends on your total income, specific deductions, and applicable exemptions. Consult a Chartered Accountant before finalizing a property sale.

Capital Gains Tax Rates on Property in India (2026)

Holding Period	Type	Tax Rate	Note
Less than 24 months	STCG	Income slab rate	Added to total annual income
24 months or more (bought before 23 Jul 2024)	LTCG	12.5% without indexation, or 20% with indexation - choose lower	Taxpayer can pick the option that saves more tax
24 months or more (bought on/after 23 Jul 2024)	LTCG	12.5% without indexation	Indexation not available for new purchases

How Capital Gains Tax Works on Property Sale in Tamil Nadu

When you sell a property in India, the profit you make is called a capital gain. Whether it is taxed as short-term or long-term depends on how many years you held the property before selling.

For properties held for less than 24 months, the gain is Short-Term Capital Gain (STCG). This is added to your other income for the year and taxed at your income slab rate. If your total income exceeds ₹ 15 lakh, the STCG is effectively taxed at 30%.

For properties held for 24 months or more, it becomes Long-Term Capital Gain. The Budget 2024-25 changed the rate to 12.5% without indexation. However, if you purchased the property before July 23, 2024, you can still compare 20% with indexation versus 12.5% without indexation and pay whichever is lower.

Under Section 54, you can reinvest the capital gains in another residential property within 2 years of sale and claim full exemption from LTCG tax. Under Section 54EC, investing up to ₹ 50 lakh in specified government bonds within 6 months can also save you the tax.

Frequently Asked Questions

If you held the property for 24 months or more, LTCG tax of 12.5% applies on the profit. If held for less than 24 months, the gain is added to your income and taxed at your slab rate (0%, 5%, 20%, or 30% depending on total income). For example, on a gain of ₹ 30 lakh after holding for 5 years, the LTCG tax would be ₹ 3.75 lakh at 12.5%.

The Union Budget 2024-25 changed the LTCG rate on real estate from 20% with indexation to 12.5% without indexation. For properties bought before July 23, 2024, taxpayers have the option to pay whichever is lower between 12.5% without indexation and 20% with indexation. This calculator shows both options and picks the lower one automatically for older properties.

Under Section 54, you can reinvest the capital gains amount in another residential property in India within 2 years of the sale or construct a new one within 3 years. Under Section 54EC, you can invest up to ₹ 50 lakh in government-specified bonds such as REC or NHAI bonds within 6 months of the sale date. Both options can reduce or eliminate your LTCG tax liability.

Receiving inherited property does not attract capital gains tax. But if you later sell the inherited property, tax will apply on the profit. The holding period for determining LTCG starts from the date the original owner first acquired the property, not from when you inherited it. The cost of acquisition is the original amount the previous owner paid.

Yes. Any property sold above ₹ 30 lakh requires the buyer to deduct TDS (Tax Deducted at Source) at 1% of the sale amount under Section 194IA. The seller must also report the capital gain in their income tax return for the relevant financial year. If LTCG exemptions under Section 54 or 54EC are being claimed, those details must be included in the tax return.

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