We have compiled an Excel based Capital gains calculator for Property based on new 2001 series CII (Cost Inflation Index). It calculates both Long Term and Short Term capital gains and associated taxes. You need to feed your property sale & purchase date along with values. There is option to include cost of repairs/improvement that you might have incurred during the holding period.
Before you start using the calculator here are some things you must know:
Short Term Vs Long Term Capital Gains
If the property is sold after 2 years (changed in Budget 2017 and applicable from April 1, 2017) of purchase the corresponding gains or losses is called LONG Term Capital Gains (or Loss). If sold within 2 years its SHORT Term Capital gains (or loss).
Long Term capital gains from property is taxed at flat rate of 20% after taking indexation in account. There is education cess of 3% effectively taking tax to 20.6%. After April 1, 2018 the cess would increase to 4% taking the effective tax to 20.8%.
Short Term Capital Gains from property is added to income and taxed at your income tax slab rates.
How much Taxes you Need to Pay this Year? Download Our Income Tax Calculator to Know your Numbers
Do you know how much tax you need to pay for the year? Have you taken benefit of all tax saving rules and investments? Should you use the “NEW” tax regime or continue with the old one? In case you have all these questions just Download the Free Excel Income Tax Calculator for FY 2021-22 (AY 2022-23) and get your answers.
How to Calculate Capital Gains?
- Take Full value of consideration (sale price)
- Subtract the following from above:
- Purchase cost
- Any cost related to purchase of property like stamp duty, registration cost, brokerage, traveling cost related to purchase, etc
- Cost of major repairs, improvement or renovation during the holding life of the property
- In case of inherited property you can consider cost related to inheritance paper work.
- The resultant amount is Capital Gains.
For long term capital gains all the deductions are indexed using CII (Cost Inflation Index) published annually by Government of India.
How to Pay 0 Income Tax on Salary of Rs 20+ Lakh (FY 2020-21)?
As you can see with the above income tax calculation, salary components and salary structure plays a very important role in how much income tax you pay. We have come up with some optimised salary structure using which you pay NO income tax even with CTC of more than Rs 20 Lakhs.
Capital Gains Calculator for Property 2021 – Points to Remember
- In case the property has been purchased before April 2001, you will need to get its fair valuation done by income tax approved valuers as of April 2001. This is because new revised CII for indexation started getting published taking FY 2001-02 as base with value of 100.
- Cost on improvements made before April 1, 2001 cannot be considered as that should be included in the value of property calculated as of April 1, 2001.
- To calculated capital gains for inherited property, the purchase cost and time of the original buyer is taken into consideration.
Calculator for Small Saving Scheme – PPF, SCSS, Sukanya Samriddhi, NSC, Post Office FD/RD/MIS
Small saving scheme sponsored by Government of India like Sukanya Samriddhi Account, PPF, Senior Citizens’ Savings Scheme are quite popular and rightly so because of the safety, higher interest rate offered among other things. We have built calculator for each of them where you can check the maturity amount, loan eligibility, partial withdrawal and more. Click on the links to get the relevant calculator
Sukanya Samriddhi Yojana Calculator
Senior Citizens’ Savings Scheme Calculator
Post Office Fixed Deposit (Time Deposit) Calculator
Post Office Recurring Deposit Calculator
Download the excel based Capital gains calculator for Property from the link below:
Save Capital Gains Tax
There are two ways you can save Long Term Capital Gains from sale of property.
- Reinvest the amount to buy one new residential property (NO land or commercial property) in India within 2 years of selling or construct a house within 3 years. If you already have bought a house within 1 year before selling the property you get tax exemption.Invest in REC, NHAI, NABARD &
- PFC Capital Gains Bond up to Rs 50 Lakhs under Section 54EC. The bonds mature in 5 years and offer interest of 5.25% payable annually. The interest received is fully taxable.
How to Save Long Term Capital Gains Tax on Property?
Long Term Capital Gains Tax on Property can severely dent your returns especially if the property sale is happening after many year or if you have seen a huge return in a very short period of time. The good news is you can save the long term capital gains tax on property – click to read the detailed post on the same.
In case you are not able to invest full capital gains as above, you will get tax exemption only on invested amount. The remaining amount would be taxed as per rules. The sale proceeds should be deposited in Capital Gains Account scheme with banks if the gains have not been utilised for buying property or bonds before filing income tax returns.
46 thoughts on “Capital Gains Calculator for Property 2021 ★ Know your Tax Liability ★”
I have purchased a residential plot in 1982 and built ground floor and first floor during 1989 and 1995 by availing bank loan of rs.1.26 lacs and rs.2.55 lacs respectively. Again during 2008 availed rs.5.85 lacs and rs.13 lacs during 2013 for improvement to the house property. Now I find a buyer for rs.84 lacs and deal will be finalised before March 2022. Advise me how the long term capital gains tax may be avoided/pay lesser tax.
I have acquired a old house built in the year 1973 in my mothers name and could be transferred to me and my Sister in the year 2019-2020 and subsequently sold the house for 18 lacs ( with taking equal share of 9 lacs each)
Please let me know how much capital gains tax to be paid on the above sale.
I m a housewife. Bought a flat in Dec 2005 n sold it in May 2018. I got to know that I need to pay capital gain tax on this. Pls let me know how to pay the tax n when it needs to be paid.
Thanks in advance
transfer leace in 1975 at Rs.107882
Sale value 6000000 as on today
Market Value 6000000