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

For sales on or after 23 July 2024, LTCG on immovable property is taxed at a flat 12.5% without indexation. For property acquired before 23 July 2024, resident individuals and HUFs may elect the lower of 12.5% without indexation or 20% with indexation — the Finance (No. 2) Act 2024 grandfathering clause.

When does property sale qualify as long-term capital gains (LTCG)?

Immovable property held for more than 24 months qualifies as long-term. Shorter holdings are short-term (STCG) and taxed at slab rates. The 24-month threshold applies from April 2017; before that the period was 36 months.

How much Section 54 exemption can I claim on a property sale?

Up to ₹10 crore (Finance Act 2023 cap) by reinvesting the capital gain into another residential house within 2 years (purchase) or 3 years (construction). From AY 2024-25, Section 54 is limited to one residential house — the earlier option to invest in two houses is withdrawn.

What is Section 54EC and how does it help reduce capital gains tax?

Section 54EC lets you invest up to ₹50 lakh of long-term capital gains in NHAI / REC / PFC / IRFC bonds within 6 months of transfer, with a 5-year lock-in. The invested amount is fully exempt from capital gains tax, making s.54EC useful alongside Section 54 for gains above the ₹10 crore cap.

Interactive Calculator · June 2026

Capital Gains Tax — Property

STCG vs LTCG auto-detection, CII indexation, dual-method LTCG comparison for pre-Jul-2024 purchases, plus Section 54 / 54EC exemption handling. Finance Act 2024.

Purchase

Purchase date

Purchase price (₹)

₹30.00 L

Sale

Sale date

Sale price (₹)

₹1.00 Cr

Transfer expenses (brokerage, legal) — ₹

Capital improvement (optional)

Structural additions, not repairs or redecoration.

FY made (starting year)

Amount (₹)

Reinvestment exemptions

Section 54 — new residential property (cap ₹10 Cr)

₹0

Section 54EC — NHAI/REC bonds (cap ₹50 L, 5-yr lock)

₹0

Tax situation

Surcharge bracket

Long-term capital gains

₹0total tax

Capital gain (pre-exemption): ₹0

Holding period

9.9 years (119 mo)

Classification

Long-term

CII indexed cost

₹44.32 L

FY 2016 CII 264 → FY 2026 CII 390

Net sale proceeds

₹98.00 L

Method comparison (Finance Act 2024 election)

12.5% without indexationCHOSEN

₹8.84 L

Taxable ₹68.00 L × 12.5% = ₹8.50 L + sur + cess

20% with indexation

₹11.17 L

Taxable ₹53.68 L × 20.0% = ₹10.74 L + sur + cess

For purchases on or after 23 Jul 2024, only the 12.5%-without-indexation method is available. Pre-cutoff purchases may choose whichever is lower — highlighted above.

Taxable LTCG (unindexed)₹68.00 L

Base tax @ 12.5%₹8.50 L

Health & Education Cess @ 4%₹34,000

Total tax₹8.84 L

Holding-period scenarios

Quick-set purchase date relative to sale date — STCG vs LTCG flips at 24 months.

Tax-saving levers

Compare tax payable across scenarios

12.5% flat (no indexation)₹8.84 L

20% with indexation₹11.17 L

Your current scenario (no exemptions)₹8.84 L

Enter a Section 54 (new house) or 54EC (bonds) amount on the left to see how each exemption lever reduces your tax.

Reinvestment options to save tax

New apartment purchased under Section 54 reinvestment

Sec 54 · new house

NHAI/REC bonds certificate for Section 54EC

Sec 54EC · bonds

CGAS · capital gains a/c

ITR-2 capital gains schedule on a laptop screen

ITR · filing

Reinvesting in a new property? Plan its interiors

DesignAI helps you spec interiors for the new home you’re buying under Section 54.

Use in DesignAI

How this works

Holding period. Immovable property held for more than 24 months is long-term. Shorter holdings are STCG, taxed at your slab rate.
Indexation. For LTCG with indexation, cost is grossed up by the CBDT Cost Inflation Index. Base year FY 2001-02 = 100. FY 2024-25 CII = 363.
Post Jul 23, 2024. Property purchased on or after this date is taxed at flat 12.5% without indexation. Earlier purchases may elect whichever of the two methods is lower (Finance Act 2024 grandfathering).
Section 54 — reinvest LTCG in a residential property within 2 years of sale (purchase) or 3 years (construction). Cap ₹10 Cr.
Section 54EC — invest in NHAI/REC/PFC/IRFC bonds within 6 months. Cap ₹50 L. 5-year lock-in.
Surcharge cap. From FY 2023-24, surcharge on capital gains under s.112 / 112A is capped at 15% — the 25% and 37% tiers do not apply.
Pre-2001 purchases. For property bought before 1 Apr 2001, enter the Fair Market Value as of 1 Apr 2001(not the historical purchase price) in the Purchase Price field. CII indexation applies from the base year onwards either way.

Deep-dive: Capital Gains Tax on Property in India — 2026 Guide

Related tools: Stamp Duty Calculator · EMI Calculator · Cost Calculator

Informational estimate only. Capital gains tax is governed by the Income Tax Act, 1961. Consult a chartered accountant before filing.

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Capital Gains Tax on Property in India — 2026 Guide

LTCG, STCG, Indexation, Section 54, 54EC, 54F & the Budget 2024 Shift

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