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Capital gains tax calculator for selling a home in India

Income-tax Act, 2025 and Finance Act, 2026; rates and Cost Inflation Index checked on 18 October 2026 against the Gazette of India and the Income Tax Department.

In short

A resident who bought a home on 15 June 2015 for ₹40 lakh and sells it on 18 October 2026 for ₹90 lakh pays ₹5,90,551 of tax on the gain: 20% on the indexed gain, lower than ₹6,25,000 at 12.5% without indexation. A non-resident seller pays ₹6,25,000. Both before surcharge and the 4% cess. A home held for more than 24 months gives a long-term gain taxed at 12.5%; the indexation option is open only to a resident individual or HUF for land or a building bought before 23 July 2024. The Cost Inflation Index for 2026-27 is 384.

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Calculate the tax on your gain

Change any field: the tax is recalculated instantly. For a sale on or after 1 April 2026.

Full value of consideration₹90,00,000
Holding periodLong-term, held 11 yr 4 mo
Capital gain₹50,00,000
Tax at 12.5% without indexation₹6,25,000
Gain with indexed cost₹29,52,756
Tax at 20% on the indexed gain₹5,90,551
Tax on the gain₹5,90,551
Basis20% on the indexed gain, lower than 12.5% (section 197(3))
Surchargenot computed (enter total income)
Health and Education Cess (4%)not computed
Total₹6,14,173 with cess, without surcharge

Formula (sections 72 and 197): gain = full value of consideration − transfer expenses − cost of acquisition − cost of improvement. The full value is the stamp duty value when the price is lower and the stamp duty value is more than 110% of the price (section 78). Long-term: tax = 12.5% of the gain; for a resident individual or HUF and a property bought before 23 July 2024, the lower of that and 20% of the gain computed with indexed cost, cost × CII of the year of sale ÷ CII of the year of purchase (or 2001-02, if later). Surcharge on a long-term gain is capped at 15%; marginal relief is not applied. Not included: section 197(2) relief for a resident whose other income is below the exemption limit, exemptions under sections 82, 85 and 86, interest already deducted under section 22 (not part of the cost), and any treaty relief for a non-resident. Short-term: one marginal rate, an approximation.

Tax on a ₹1 crore sale of a home bought for ₹50 lakh, by date of purchase

Bought onCII of that yearAt 12.5%At 20%, indexedResident paysNon-resident pays
1 June 2005117₹6,25,000₹0₹0₹6,25,000
1 June 2010167₹6,25,000₹0₹0₹6,25,000
1 June 2015254₹6,25,000₹4,88,189₹4,88,189₹6,25,000
1 June 2020301₹6,25,000₹7,24,252₹6,25,000₹6,25,000
1 June 2024363₹6,25,000₹9,42,149₹6,25,000₹6,25,000
1 August 2024363₹6,25,000not available₹6,25,000₹6,25,000

Sale on 18 October 2026 (tax year 2026-27, CII 384), no improvement, no transfer expenses, before surcharge and cess. Calculation with the formula above and the Cost Inflation Index notified under section 72(8)(a).

The tax can be reduced by reinvesting: section 82 (formerly 54) for a residential house sold and another bought or built in India; section 85 (formerly 54EC) for land or a building, with the gain invested in specified bonds within 6 months, up to ₹50 lakh; section 86 (formerly 54F) for another long-term asset sold and a house bought. They are not computed here: see capital gains exemptions under sections 82, 85 and 86.

Before you sell

General information drawn from the official sources cited and dated on this page. It is not legal, tax or financial advice: for your own situation, ask a licensed professional.

Sources

Payotte study: indexation or 12.5%, the threshold for each year of purchase.