Quick answer
How much capital gains tax do I pay on property or shares in India?
For sales on or after 23 July 2024, long-term capital gains tax is 12.5% without indexation on property and most assets, and 12.5% on listed equity above ₹1.25 lakh a year. Short-term gains on listed equity are taxed at 20%, and short-term gains on property at your slab rate. Surcharge and cess are added.
- Property is long-term after 24 months; listed shares after 12 months
- Residents can compare 20% with indexation for land bought before 23 July 2024
- Sections 54, 54EC and 54F can reduce the tax to nil
- FY 2025-26 sales are reported under the Income-tax Act 1961
What is capital gains tax and who needs a CA for it?
Capital gains tax applies when you transfer a capital asset for more than its cost. The gain is the sale price minus the cost of acquisition, cost of improvement and expenses on the transfer, and it is taxed in the year of sale whether or not you have spent the money.
You should get the computation done by a professional when any of these apply:
- You sold a flat, builder floor, plot or shop in Delhi, Gurgaon or Noida, especially an inherited or jointly owned one.
- You plan to claim an exemption by buying another house or investing in bonds.
- You redeemed mutual funds or sold shares and AIS shows large figures you cannot match.
- You are an NRI and the buyer has already deducted TDS on the sale.
- You have losses from earlier years that you want to set off.
A wrong holding period or a missed exemption window can cost lakhs, so the first job is always to date every purchase, payment and sale correctly.
What are the capital gains tax rates for FY 2025-26?
For transfers on or after 23 July 2024, the Finance (No. 2) Act 2024 set long-term gains at a flat 12.5% without indexation for most assets and raised short-term tax on listed equity to 20%. All FY 2025-26 sales fall under these rates.
| Asset | Long-term after | Short-term rate | Long-term rate |
|---|---|---|---|
| Listed equity shares and equity funds (STT paid) | 12 months | 20% (section 111A) | 12.5% on gains above ₹1.25 lakh a year (section 112A) |
| House, flat, plot, shop or other land and building | 24 months | Slab rate | 12.5% without indexation (section 112) |
| Land or building bought before 23 July 2024, resident individual or HUF | 24 months | Slab rate | Lower of 12.5% without indexation or 20% with indexation |
| Unlisted shares | 24 months | Slab rate | 12.5% without indexation |
Sources: CBDT FAQs on the new capital gains regime (PIB) and the e-filing portal, which caps surcharge on these gains at 15%. Checked November 2026.
Need help with capital gains tax computation and ITR filing? Talk to a chartered accountant in Delhi today. First call is free.
How is capital gain tax on sale of property calculated?
Capital gain tax on sale of property is worked out by taking the sale value, deducting the purchase cost, improvement cost and transfer expenses such as brokerage, and applying the rate for that holding period. A long-term gain is then reduced by any exemption you qualify for.
Worked example (illustrative): a resident bought a flat in Rohini in 2012 for ₹40 lakh and sold it in December 2025 for ₹1.2 crore, paying ₹1 lakh brokerage. The long-term gain without indexation is ₹79 lakh. At 12.5%, tax is about ₹9.88 lakh before surcharge and cess. Because the flat was bought before 23 July 2024, we also run the 20% with indexation figure and use whichever is lower. If the seller invests ₹50 lakh in 54EC bonds within six months, the taxable gain falls to ₹29 lakh and the 12.5% tax to about ₹3.63 lakh.
Non-residents cannot use the 20% with indexation option. NRI sellers should read our page on TDS on sale of property by NRI.
How does the Section 54 exemption work?
The section 54 exemption lets an individual or HUF who sells a residential house at a long-term gain avoid tax by buying another house within one year before or two years after the sale, or building one within three years.
Points that decide how much you save:
- Only the amount you put into the new house counts, and any cost above ₹10 crore is ignored (from AY 2024-25).
- If the gain is ₹2 crore or less, you can choose to buy two houses instead of one. This option can be used once in a lifetime.
- If you cannot buy before the return due date, the unused gain must go into the Capital Gains Account Scheme at a bank, or it is taxed.
- Selling the new house within three years reverses the benefit.
Section 54 vs 54EC vs 54F: which exemption fits you?
Section 54 is for sellers of a house who buy a house, 54F for sellers of any other long-term asset who buy a house, and 54EC for sellers of land or building who park the gain in specified bonds. Many sellers combine two of them.
| Item | Section 54 (s.82) | Section 54F (s.86) | Section 54EC (s.85) |
|---|---|---|---|
| Asset sold | Residential house, long-term | Any long-term asset other than a house, such as plot, shares, gold | Land or building, long-term |
| Where to invest | One residential house in India (two once, if gain up to ₹2 crore) | One residential house in India | Bonds notified for 54EC, such as NHAI, REC, HUDCO, IREDA |
| What to invest | The capital gain | The net sale consideration (proportionate relief if less) | The capital gain, up to ₹50 lakh |
| Time limit | Buy 1 year before or 2 years after; build within 3 years | Same as section 54 | Within 6 months of the sale |
| Key condition | Do not sell the new house within 3 years | You must not own more than one other house on the sale date | Bonds locked in for 5 years |
| Cap | ₹10 crore | ₹10 crore | ₹50 lakh across the year of sale and the next year |
Sources: Income Tax Department pages on section 54EC and the tutorial Exemptions from Capital Gains (as amended by Finance Act 2025), checked November 2026.
What documents do you need for a capital gains computation?
Bring the purchase and sale deeds, proof of every payment, improvement bills, broker statements and the TDS details. For shares and funds, the capital gains statements from your broker and registrar do most of the work.
| Document | Why we need it |
|---|---|
| Purchase deed or allotment letter and payment receipts | Cost and date of acquisition |
| Sale deed and bank credits | Sale value and date of transfer |
| Bills for construction, extension or major repairs | Cost of improvement |
| Brokerage and legal fee receipts | Expenses on transfer |
| Will, succession certificate or gift deed | Cost and holding period for inherited or gifted property |
| Broker and mutual fund capital gains statements | Share and fund gains, with grandfathered values where relevant |
| New house agreement, 54EC bond receipts or Capital Gains Account passbook | Exemption claims |
| AIS, Form 26AS and TDS certificate | Matching what the department already sees |
How we handle capital gains tax for you: step by step
Our process runs in five steps and most cases can be completed online, with the computation shared for your approval before anything is filed.
- 1
Tell us about the sale
Send the deed or broker statement on WhatsApp at +91 99114 92897 or through the enquiry form, with the sale date and amount.
- 2
Fixed quote
We look at the number of assets and exemptions involved and give you a fixed quote before work starts.
- 3
Computation and exemption plan
We compute short and long-term gains, compare the indexation option where allowed, and list the deadlines for 54, 54EC or 54F.
- 4
Your approval
You see the tax payable, the advance tax position and what to invest by when.
- 5
ITR filing
We file ITR-2 or ITR-3 with the capital gains schedules and keep the working papers in case a notice arrives later.
What happens if capital gains are not reported correctly?
Property sales and share redemptions appear in your AIS, so an unreported or wrongly computed gain usually leads to a mismatch notice, demand with interest, and the loss of exemptions you could have claimed.
Common errors we see in Delhi cases:
- Treating a flat as short-term because the registry came late, when the holding period should be checked against the allotment and payment history.
- Using ITR-1 or ITR-4 with short-term gains or long-term equity gains above ₹1.25 lakh, which those forms do not allow.
- Claiming section 54F while owning two other flats on the date of sale.
- Missing the six-month window for 54EC bonds.
- Filing late, which means capital losses cannot be carried forward. If this has already happened, see our page on the belated and updated return.
If a notice has already arrived, our income tax notice reply team can review it.
Capital gains tax help in Delhi: who does the work
The CA in Delhi office is at Best Sky Tower, Netaji Subhash Place, a short walk from the Red and Pink line metro, and convenient for sellers in Pitampura, Rohini and Shalimar Bagh.
Moneymji, one of the firms in our directory of chartered accountant firms in Delhi, lists income tax and valuation among its services. For cross-border sellers with assets in more than one country, Greenwolf Advisors works on offshore tax strategy. For anything outside a listed firm's services, we pass the enquiry to the partner professional who handles it and confirm scope and a fixed quote before work starts. If you would rather meet someone first, see our tax consultant near me page. Simple salary returns without a sale belong on our income tax return filing page.
Frequently asked questions
Is there any capital gains tax on selling a house held for more than two years?
Yes. A house held for more than 24 months gives a long-term gain, taxed at 12.5% without indexation for sales from 23 July 2024. Resident individuals and HUFs who bought before that date can use 20% with indexation if it gives lower tax. Sections 54 and 54EC can then reduce or remove the tax.
What is the capital gain tax on sale of property for a resident who bought it in 2015?
The gain is long-term. You compute tax two ways, 12.5% on the gain without indexation and 20% on the gain after indexing the cost, and pay the lower figure. Surcharge and 4% cess are added. Reinvesting in a house or 54EC bonds can bring it down further.
Can I claim the section 54 exemption if I buy the new house before selling the old one?
Yes, as long as the new house is bought within one year before the date of sale. The new house must be a residential house in India, and the exemption is limited to the gain and to ₹10 crore of the new cost.
What if I cannot buy the new house before the ITR due date?
Deposit the unused gain, or net consideration for 54F, in the Capital Gains Account Scheme at an authorised bank before the return due date. Withdraw it only to buy or build the house within the allowed time. Money left unused at the end of the period is taxed.
How much can I invest in 54EC bonds?
Up to ₹50 lakh across the year of sale and the following year, within six months of the sale. The bonds are locked in for five years. Under the Income-tax Act 2025 the same benefit sits in section 85, and taking a loan against the bonds counts as cashing them.
Is long-term capital gain on shares up to ₹1.25 lakh tax-free?
Yes. Long-term gains on listed equity shares and equity-oriented funds covered by section 112A are exempt up to ₹1.25 lakh in a year. The excess is taxed at 12.5% without indexation. Short-term gains on the same assets are taxed at 20%.
Which ITR form do I use if I have capital gains?
Usually ITR-2, or ITR-3 if you also have business income. ITR-1 and ITR-4 can be used only when the sole capital gain is long-term equity gain under section 112A up to ₹1.25 lakh and there is no short-term gain.
Has the Income-tax Act 2025 changed capital gains tax?
The new Act applies from tax year 2026-27, so sales made from 1 April 2026 fall under it. Sections are renumbered, for example section 54 becomes section 82, 54EC becomes 85 and 54F becomes 86. Sales in FY 2025-26 are still reported under the 1961 Act.
Do I pay advance tax on a capital gain?
Yes, if your total tax for the year after TDS is above the advance tax limit. A gain arising late in the year can be covered in the remaining instalments. See our advance tax due dates for the schedule.
Can capital losses reduce my tax?
Capital losses can be set off against capital gains under the rules for short and long-term losses, and the balance carried forward. The carry-forward is allowed only if the return for the loss year was filed by the original due date.