Free calculator · West Bengal
Capital Gains Tax on Property Sale (India, for West Bengal sellers)
Work out the holding period, the gain, the tax under the 12.5% and 20% indexation options, exemptions, and the TDS the buyer will deduct.
Quick answer: Land or buildings held over 24 months give a long-term gain taxed at 12.5% without indexation; resident individuals and HUFs who bought before 23 July 2024 may pay 20% with indexation if that is lower. Shorter holdings are taxed at slab rates.
| Item | 12.5% without indexation | 20% with indexation (lower tax) |
|---|---|---|
| Sale price | ₹90,00,000 | ₹90,00,000 |
| Transfer expenses | ₹0 | ₹0 |
| Cost of purchase | - ₹40,00,000 | - ₹60,47,244 |
| Cost of improvements | ₹0 | ₹0 |
| Capital gain | ₹50,00,000 | ₹29,52,756 |
| Taxable gain | ₹50,00,000 | ₹29,52,756 |
| Tax rate | 12.5% | 20% |
| Tax | ₹6,25,000 | ₹5,90,551 |
| Health and education cess (4%) | ₹25,000 | ₹23,622 |
| Tax + cess (before surcharge) | ₹6,50,000 | ₹6,14,173 |
You are a resident individual or HUF and bought before 23 July 2024, so the law lets you pay the lower of 12.5% on the gain without indexation and 20% on the gain with indexation. Here the lower one is 20% with indexation, saving ₹35,827.
Cost and indexation
| Item | Amount | CII used | Indexed cost |
|---|---|---|---|
| Purchase, 15 Jun 2015 Actual purchase cost |
₹40,00,000 | 2015-16: 254 | ₹60,47,244 |
| Sale, 15 Sep 2026 | 2026-27: 384 |
Indexed cost = cost × CII of the sale year (384) ÷ CII of the year the money was spent.
The buyer deducts 1% TDS under Section 194-IA (₹90,000) because the sale value is ₹50 lakh or more. This is not an extra tax: it is credited against your tax when you file your return. It becomes 20% if your PAN is missing or inoperative.
Surcharge (not included above) depends on your total income for the year: 10% on the tax if it is above ₹50 lakh, 15% if above ₹1 crore (capped at 15% for these long-term gains). Cess of 4% is then charged on tax plus surcharge.
This is an estimate, not tax advice. Your real tax depends on facts this tool does not see, such as your other income, how you got the property, joint ownership and the exact dates of any reinvestment. Check with a chartered accountant before you sell, file or pay.
Cost Inflation Index, year by year
| Financial year | CII |
|---|---|
| 2001-02 | 100 |
| 2002-03 | 105 |
| 2003-04 | 109 |
| 2004-05 | 113 |
| 2005-06 | 117 |
| 2006-07 | 122 |
| 2007-08 | 129 |
| 2008-09 | 137 |
| 2009-10 | 148 |
| 2010-11 | 167 |
| 2011-12 | 184 |
| 2012-13 | 200 |
| 2013-14 | 220 |
| 2014-15 | 240 |
| 2015-16 (used) | 254 |
| 2016-17 | 264 |
| 2017-18 | 272 |
| 2018-19 | 280 |
| 2019-20 | 289 |
| 2020-21 | 301 |
| 2021-22 | 317 |
| 2022-23 | 331 |
| 2023-24 | 348 |
| 2024-25 | 363 |
| 2025-26 | 376 |
| 2026-27 (used) | 384 |
Base year 2001-02 = 100. 2026-27 = 384 (CBDT Notification No. 85/2026, 15 July 2026).
Estimate only, not tax advice. Tax law has many conditions and exceptions. Use this to plan, then confirm the numbers with a chartered accountant before you sell, file your return or pay tax.
How the tax is worked out
- Holding period. Land or a building held for more than 24 months gives a long-term gain. 24 months or less gives a short-term gain.
- Sale value. The sale price, or the stamp duty value if that is more than 110% of the price (Section 50C).
- Gain without indexation = sale value - brokerage and legal costs - purchase cost - improvement costs. Tax is 12.5% of this.
- Gain with indexation = sale value - sale costs - (purchase cost × CII of sale year ÷ CII of purchase year) - (each improvement × CII of sale year ÷ CII of its year). Tax is 20% of this.
- Which applies. Resident individuals and HUFs who bought before 23 July 2024 pay the lower of the two. NRIs, and anyone who bought on or after 23 July 2024, pay 12.5% without indexation.
- Exemptions under Sections 54, 54F and 54EC come off the gain before tax.
- Cess and surcharge. 4% health and education cess is added on the tax. Surcharge of 10% (total income above ₹50 lakh) or 15% (above ₹1 crore) may apply; for these gains it is capped at 15%.
Worked example
A resident bought a Kolkata flat on 15 June 2015 for ₹40,00,000 and sells it on 15 September 2026 for ₹90,00,000. She held it for 11 years and 3 months, so the gain is long-term.
- Without indexation: gain = ₹90,00,000 - ₹40,00,000 = ₹50,00,000. Tax at 12.5% = ₹6,25,000, plus 4% cess = ₹6,50,000.
- With indexation: indexed cost = ₹40,00,000 × 384 ÷ 254 = ₹60,47,244. Gain = ₹29,52,756. Tax at 20% = ₹5,90,551, plus 4% cess = ₹6,14,173.
- She bought before 23 July 2024, so she can pay the lower amount: ₹6,14,173 with indexation, about ₹35,800 less. The buyer deducts 1% TDS (₹90,000) under Section 194-IA, which counts towards this tax.
TDS the buyer must deduct
| Seller | Rule | TDS |
|---|---|---|
| Resident | Section 194-IA, sale value ₹50 lakh or more | 1% |
| NRI, long-term, up to ₹50 lakh | Section 195: 12.5% + 4% cess | 13.0% |
| NRI, long-term, ₹50 lakh to ₹1 crore | 12.5% + 10% surcharge + 4% cess | 14.3% |
| NRI, long-term, above ₹1 crore | 12.5% + 15% surcharge + 4% cess | 14.95% |
| NRI, short-term | 30% + surcharge + 4% cess | 31.2% up |
For an NRI there is no ₹50 lakh threshold. The buyer deducts on the full sale price unless the seller gets a lower deduction certificate from the Assessing Officer, which usually brings TDS close to the tax on the gain. From 1 October 2026, resident individual and HUF buyers are reported to be able to deposit NRI property TDS using their PAN, without a TAN (Notification 121/2026 as reported; confirm on incometax.gov.in). For NRI buying, selling and repatriation rules under FEMA, see the RBI Master Direction on immovable property.
Exemptions in short
- Section 54 (house or flat sold): buy one residential house in India 1 year before or 2 years after the sale, or build one within 3 years. Exempt up to the amount invested, counted up to ₹10 crore. Two houses are allowed once in a lifetime if the gain is up to ₹2 crore.
- Section 54F (plot, land or other non-house asset sold): invest in one residential house. Exempt part = gain × amount invested ÷ net sale value. You must not own more than one other house on the sale date.
- Section 54EC: put up to ₹50 lakh into NHAI, REC, PFC or IRFC bonds within 6 months of the sale; 5-year lock-in.
- Rural agricultural land outside municipal limits and the distance bands is not a capital asset, so there is no capital gains tax on it.
Rules, sources and dates
- 12.5% rate, 24-month holding period and the lower-of option for resident individuals and HUFs: Finance (No. 2) Act 2024, for transfers on or after 23 July 2024.
- The Income-tax Act 2025 replaced the Income-tax Act 1961 from 1 April 2026 and carries these rules under new section numbers. This page uses the 1961 section numbers most people and documents still use.
- Cost Inflation Index 2026-27 = 384: CBDT Notification No. 85/2026 dated 15 July 2026.
- Value on 1 April 2001 capped at the stamp duty value on that date: Finance Act 2020 amendment to Section 55(2)(b).
- Official sources: incometax.gov.in and incometaxindia.gov.in (Acts, notifications and forms); RBI Master Direction on acquisition and transfer of immovable property for NRIs.
- Not covered: inherited or gifted property (the previous owner's cost and holding period are used), joint owners (each works out their own share), under-construction flats bought on allotment, and sales before 23 July 2024.
Rules last checked 15 October 2026. Need the buying side? See the stamp duty calculator.
Frequently asked questions
How is capital gains tax on property calculated in India in 2026?
If you held the land or building for more than 24 months, the gain is long-term and taxed at 12.5% without indexation, plus surcharge and 4% cess. Resident individuals and HUFs who bought before 23 July 2024 can instead pay 20% on the gain with indexation, whichever is lower. If you held it for 24 months or less, the gain is short-term and added to your income at slab rates.
What is the Cost Inflation Index for 2026-27?
The Cost Inflation Index for financial year 2026-27 is 384, notified by CBDT Notification No. 85/2026 dated 15 July 2026. It was 376 for 2025-26 and 363 for 2024-25. The base year is 2001-02 = 100.
Can an NRI use indexation when selling property in India?
No. Since 23 July 2024, NRIs pay 12.5% on long-term gains from land or buildings without indexation. The option to pay 20% with indexation is only for resident individuals and HUFs who bought before 23 July 2024.
How much TDS does a buyer deduct when an NRI sells property?
Under Section 195 the buyer deducts TDS on the sale price unless the NRI has a lower deduction certificate. For a long-term gain the rate is 12.5% plus surcharge and 4% cess: about 13% up to ₹50 lakh, 14.3% from ₹50 lakh to ₹1 crore and 14.95% above ₹1 crore. Extra TDS is refunded after the return is filed.
How can I save capital gains tax on selling a house?
For a long-term gain you can claim Section 54 by buying or building one residential house in India (exemption up to the amount invested, counted up to ₹10 crore), or Section 54EC by buying NHAI, REC, PFC or IRFC bonds within 6 months (up to ₹50 lakh). For a plot or other non-house asset, Section 54F applies. Each has conditions, so check with a chartered accountant.
What if I bought the property before 2001?
You can use the fair market value on 1 April 2001 instead of the actual cost, but for land and buildings that value cannot be more than the stamp duty value on 1 April 2001. Indexation then starts from 2001-02 (CII 100). A registered valuer's report is usually needed.
Rates and conventions last checked: .