Capital Gains Calculator for Property

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.

Download: Free ebook for Income Tax Planning for FY 2018-19

How to Calculate Capital Gains?

1. Take Full value of consideration (sale price)

2. 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.

3. 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.

Also Read: 25 Tax Free Incomes & Investments in India

Download Capital Gains Calculator for Property

Download Capital Gains Calculator for Property

Some Points:

1. 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.

2. 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.

3. To calculated capital gains for inherited property, the purchase cost and time of the original buyer is taken into consideration.

Also Read: How are your Investments Taxed?

Download Calculator:

Download the excel based Capital gains calculator for Property from the link below:

Download Capital Gains Calculator for Property (57.19 KB)

Save Capital Gains Tax:

There are two ways you can save Long Term Capital Gains from sale of property.

  1. 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.
  2. Invest in REC or NHAI Capital Gains Bond up to Rs 50 Lakhs under Section 54EC. The bonds mature in 3 years and offer interest of 5.25% payable annually. The interest received is fully taxable.

Also Read: How to Save Long Term Capital Gains Tax from Property?

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 utilized for buying property or bonds before filing income tax returns. We will do a detailed post on – How to save capital gains on property soon.

17 thoughts on “Capital Gains Calculator for Property

  1. Sankarsan Ghosh says:

    Hi Amit sir,
    My uncle is selling his house now amd moving to another state. He built it in the early 80’s. His total cost of builing came to around 9L then. He is selling it for 75L now. So what would be his capital gains and how much tax does he have to pay.

  2. Sagar Deshpande says:

    Hello,

    I Purchase Flat 2BHK on 15th April; 2010; (F.Y.2010-11) with Govt Valuation rate is 8.5 Lakh.
    My Sale deed for Flat is 20th March 2014. (F.Y.2013-14)
    I sale Flat on 24th August 2016 (F.Y. 2016-17) with actual sale price is 21 Lakh, but Govt Valuation is 28.76 Lakh.

    Now if I want to Pay Tax under whether it’s under Long Term or Short Term.
    Which value should be considered for Calculation it’s 21 Lakh or 28.76 Lakh.

    Is their any way to save tax.
    Thanks for expert suggestion.

    • As per me the gains would qualify for Short term capital gains as the sale deed & sale by you period is less than 3 years (the 2 year rule was changed from FY 2017-18 onwards).

      You cannot save short term capital gains but offset in case you have any short term capital losses!

  3. Is this still remains the same after Budget 2018.
    Pleas share if there is any change.

    • There is NO change in computation of capital gains for property in Budget 2018. However from April 2018 the investment duration of long term capital savings bond would go up from 3 to 5 years.

  4. where I can get the XL sheet with the new base year of 2001 ?
    thanx

  5. Shailesh Damle says:

    in short wile i am sealing my flat ( purchased by me in 1999 @ 295000 ) to one gentlemen @ 1460000 kindly let me know how i can avoid capital gain tax by saving schemes.

  6. I have purchased a old house for 2Crore. I have paid fully with my saving and retirement benefits.
    Later after 6 months I sold my 30×40 site for 75 Lakh. And I sold my flat for 50Lakh
    Captital gain from these property can be adjusted with the purchased of house which happed 6 months earlier.

  7. Dear Sir

    I notice from your website that the XL sheet for Capital Gain calculation is based on the base year of 1981. I shall appreciate if you can mail me OR mail me the link where I can get the XL sheet with the new base year of 2001.

    Thank you.

  8. Sir I am going to purchase a plot in Noida . Which circle rate is 72000 / meter and deal value is 55000/ meter. I am salaried person my salary is 51 lac. Plz calculate how much tax I have to paid tax according this capital gain . By buyer

  9. USHA LAKSHMANAN says:

    I want to sell my house bought in Aug 1991 now at a price of Rs.80 lacs what capital gain tax I have to pay now I bought for Rs.2.50lacs at that time pl reply me

  10. Sanjay kumar - Practicing Cost & Management Accountant says:

    simply one of the best sites for taxation matter

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