Is Konnect2Tools free?

Yes. These in-browser tools are completely free to use with no account required for core functionality.

Do my files leave my device?

Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.

Is the Property Capital Gains Calculator tool safe to use?

Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.

What is the LTCG tax rate on property in India for FY 2025-26?

For FY 2025-26, LTCG on immovable property is taxed at 20% with indexation benefit (Cost Inflation Index adjustment). This applies to properties held for more than 24 months. The 2024 Union Budget initially proposed 12.5% without indexation, but a subsequent amendment restored the 20% with indexation option for property. Sellers can choose the more favorable of: (a) 20% with indexation, or (b) 12.5% without indexation, for properties acquired before July 23, 2024. Surcharge and 4% health & education cess applies on top of the base 20% rate.

How is the Cost Inflation Index (CII) used for property?

CII is published annually by CBDT. Base year is FY 2001-02 (CII = 100). For FY 2024-25, CII = 363. To calculate indexed cost: take your purchase price, multiply by (CII of sale year / CII of purchase year). For a property bought in FY 2005-06 (CII = 117) for ₹20L and sold in FY 2024-25 (CII = 363): Indexed cost = 20 × (363/117) = ₹62.05L. This inflated cost base dramatically reduces taxable LTCG. Importantly, indexation benefit is not available for STCG or for assets transferred after July 23, 2024 at the seller's option under new 12.5% rate.

Can I avoid capital gains tax completely on property sale?

Yes, through reinvestment exemptions: (1) Section 54 — sell residential property, buy another residential property within 2 years or construct within 3 years; exemption = lower of capital gain or new property cost. (2) Section 54F — sell any long-term asset, invest entire consideration in residential property. (3) Section 54EC — invest capital gains (up to ₹50L) in NHAI/REC bonds within 6 months; 5-year lock-in. Note: Section 54 was amended to allow exemption on only 1 property (previously 2) for gains above ₹2Cr. Planning the reinvestment carefully can legally eliminate capital gains tax entirely.

Is capital gains tax payable if I inherit a property and sell it?

Yes, but with favorable treatment. For inherited property: (1) The holding period includes the deceased's holding period — so if your father bought the property 10 years ago, it qualifies as LTCG even if you inherited it recently; (2) Cost of acquisition = actual cost to the original purchaser (father's purchase price), not the value at time of inheritance; (3) Indexation benefit is available from the original purchase year. Capital gains tax from inherited property also qualifies for Section 54 exemption if reinvested. Inheritance itself is not taxable — it's only the subsequent sale that triggers capital gains.

Real Estate Tools

Property Capital Gains Calculator

Calculate LTCG or STCG on sale of property with indexation benefit.

This tool provides an estimate or a starting draft. Check the assumptions and current official requirements before relying on the result. It does not replace qualified financial, legal or medical advice.

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Property capital gains in India are classified as Short-Term or Long-Term based on the holding period. Properties held for more than 24 months qualify for Long-Term Capital Gains (LTCG), taxed at 20% with indexation benefit. Properties held 24 months or less are Short-Term Capital Gains (STCG), taxed at the seller's applicable income slab rate (up to 30% for those in the highest bracket). The 2024 Union Budget changed LTCG on property to 12.5% without indexation, but the government reverted this for property specifically — indexation remains available for property sold after July 23, 2024 at the seller's option.

Indexation adjusts the purchase price for inflation using the Cost Inflation Index (CII) published annually by the CBDT. Formula: Indexed Cost = Original Purchase Price × (CII of sale year / CII of purchase year). Example: Property bought in FY 2010-11 for ₹30L (CII = 167), sold in FY 2024-25 (CII = 363). Indexed cost = 30 × (363/167) = ₹65.2L. If sold for ₹1Cr, LTCG = ₹1Cr - ₹65.2L = ₹34.8L. Tax at 20% = ₹6.96L instead of ₹14L without indexation — a saving of ₹7L.

Sections 54 and 54F of the Income Tax Act provide LTCG exemption through reinvestment. Section 54 exempts LTCG from selling a residential property if the proceeds are reinvested in another residential property within 2 years (or construction within 3 years). Section 54F applies to non-residential asset sale — requires entire sale consideration (not just capital gains) to be reinvested. Section 54EC allows LTCG to be invested in NHAI/REC bonds (up to ₹50L) within 6 months to avoid tax, with a 5-year lock-in.

How to use this utility

Use the controls below—paste text, pick files, or adjust options as described on the tool.
Click the main action button. Processing runs in your browser on this device.
Download or copy the output. Check the processing note for any external services used by this operation.

Common use cases

Calculating LTCG tax on a property bought in 2012 for ₹25L and sold in 2025 for ₹85L using CII indexation
Determining whether to reinvest capital gains in another property under Section 54 to avoid ₹10L+ capital gains tax
Computing STCG tax on a property held for only 18 months that appreciated significantly
Investing capital gains in 54EC bonds (NHAI/REC) within 6 months to defer tax on property sale
Planning property sale timing to cross the 24-month holding threshold and qualify for LTCG treatment

Tips for best results

1Always wait for the 24-month holding period — crossing from STCG (30% slab) to LTCG (20% indexed) on a ₹50L gain saves ₹5L+ in tax
2Keep all improvement expenditure records (renovation bills, construction receipts) — these increase the cost base and reduce taxable capital gains
3If you have capital gains above ₹50L, invest in 54EC bonds within 6 months of sale — NHAI and REC bonds currently offer 5.25% tax-free yield with 5-year lock-in
4Deposit capital gains in Capital Gains Account Scheme (CGAS) at a public sector bank if you cannot reinvest immediately but want to preserve the Section 54 exemption deadline
5For properties received as inheritance or gift, cost of acquisition is the original cost to the previous owner, and holding period includes the deceased's/donor's period of holding

Frequently asked questions

Is Konnect2Tools free?: Yes. These in-browser tools are completely free to use with no account required for core functionality.
Do my files leave my device?: Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.
Is the Property Capital Gains Calculator tool safe to use?: Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.
What is the LTCG tax rate on property in India for FY 2025-26?: For FY 2025-26, LTCG on immovable property is taxed at 20% with indexation benefit (Cost Inflation Index adjustment). This applies to properties held for more than 24 months. The 2024 Union Budget initially proposed 12.5% without indexation, but a subsequent amendment restored the 20% with indexation option for property. Sellers can choose the more favorable of: (a) 20% with indexation, or (b) 12.5% without indexation, for properties acquired before July 23, 2024. Surcharge and 4% health & education cess applies on top of the base 20% rate.
How is the Cost Inflation Index (CII) used for property?: CII is published annually by CBDT. Base year is FY 2001-02 (CII = 100). For FY 2024-25, CII = 363. To calculate indexed cost: take your purchase price, multiply by (CII of sale year / CII of purchase year). For a property bought in FY 2005-06 (CII = 117) for ₹20L and sold in FY 2024-25 (CII = 363): Indexed cost = 20 × (363/117) = ₹62.05L. This inflated cost base dramatically reduces taxable LTCG. Importantly, indexation benefit is not available for STCG or for assets transferred after July 23, 2024 at the seller's option under new 12.5% rate.
Can I avoid capital gains tax completely on property sale?: Yes, through reinvestment exemptions: (1) Section 54 — sell residential property, buy another residential property within 2 years or construct within 3 years; exemption = lower of capital gain or new property cost. (2) Section 54F — sell any long-term asset, invest entire consideration in residential property. (3) Section 54EC — invest capital gains (up to ₹50L) in NHAI/REC bonds within 6 months; 5-year lock-in. Note: Section 54 was amended to allow exemption on only 1 property (previously 2) for gains above ₹2Cr. Planning the reinvestment carefully can legally eliminate capital gains tax entirely.
Is capital gains tax payable if I inherit a property and sell it?: Yes, but with favorable treatment. For inherited property: (1) The holding period includes the deceased's holding period — so if your father bought the property 10 years ago, it qualifies as LTCG even if you inherited it recently; (2) Cost of acquisition = actual cost to the original purchaser (father's purchase price), not the value at time of inheritance; (3) Indexation benefit is available from the original purchase year. Capital gains tax from inherited property also qualifies for Section 54 exemption if reinvested. Inheritance itself is not taxable — it's only the subsequent sale that triggers capital gains.

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