## Capital Gain Calculator

Written By: bemoneyaware

This calculator can be used for Capital Gain Calculation as per Income Tax law in India. It calculates the time of holding based on purchase date and sale date. Based on type of asset, holding period it calculates Short Term Capital gains and Long Term Capital Gains.
Our posts Basics of Capital Gain, Cost Inflation Index,Indexation and Long Term Capital Gains would be helpful in understanding the concepts.

Our article How to Calculate Capital gain on Sale of House? discusses specifically the capital gain on sale of house or property. Cost Inflation Index for all the years can be found at Cost Inflation Index Up to FY 2016-17
 Purchase Price Sale Price Num of Units Purchase Details Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 Sale Details Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 Investment Type Shares Debt Mutual Funds Equity Mutual Funds Real Estate FMP Gold
Results

Investment Type:

Time between Sale and Purchase:

Gain Type:

It is still in development stage so Apologies upfront for any mistake. Please let us know of the mistake or error in calculation we will correct it.

### 141 Responses to Capital Gain Calculator

Hi readers, can someone clear my doubt. I sold few of employee options in my previous company (listed in SIX) in 2010. That time my salary (total gross) was 2,32,280 INR PA and I received 1,34,000 INR after sale of options. Then my employer deducted the tax of ~15,500 INR for that year as TDS under short term capital gains clause. These shares were allocated in 2008 and the transaction happened in 2010. It was cashless transaction (meaning buying value will be deducted from selling value on the same day). Is it correct or I can apply for refund?

• bemoneyaware says:

Why would you want to report 2010 cashless transactions now. Did you not file your ITR for 2010-2011.
Money was finally credited into your account right?

2. Antony Jude says:

Hi,

I need a help in understanding my capital gain tax calculation.

Results
Investment Type:Real Estate
Time between :3 years 121 days
Gain Type: Long Term Capital Gain

Difference betweem sale and purchase price: 4100000

CII of the Purchase Year: 2013 month: Aug : 939
CII of the Sale Year: 2016 month: Dec : 1125
Purchase Indexed Cost:2875399.36

Difference betweem sale and indexed purchase price: 3624600.64

Long Term Capital Gain Tax with indexation (at 20%):724920.13

If I invest around 30 Lakhs for the new house, how much will be my capital gain tax?

3. Sandip Singha says:

Date of Purchase of a Flat A is = 29-Jan-2016
Purchase Amount of the Flat A is =13,23,200/-
Registry Charge Amount of the Flat A is =79412/-

Date of Sale of the Flat A is=05-Oct-2016
Sale Amount of the Flat A is =27,50000/-
Sale Market Value of the Flat A is=27,62000/-

I foreclosed the home loan (of flat A) using this and the amount was Rs. 778125/-
I have another home loan and there also I paid Rs.2,00,000.00
(1) Please let me know if there will be any capital tax for it?
(2) Is there any way to get rid of it?
(3) If I buy another Flat will that help?

4. Sandip Singha says:

Date of Purchase of a Flat A is = 29-Jan-2016
Purchase Amount of the Flat A is =13,23,200/-
Registry Charge Amount of the Flat A is =79412/-

Date of Sale of the Flat A is=05-Oct-2016
Sale Amount of the Flat A is =27,50000/-
Sale Market Value of the Flat A is=27,62000/-

I foreclosed the home loan (of flat A) using this and the amount was Rs. 778125/-
I have another home loan and there also I paid Rs.2,00,000.00
Please let me know if here will be any capital tax for it/

we purchased a plot in 1972-73 costing Rs 4200/- and constructed a house over it which was assessed to Rs 20000/- in 1977-8 subsequently I added some more construction in 2003-4 for about Rs 700000/-. I want to sell it at Rs 55lakh now 2016-17. what will be the capital gain?

6. Ray says:

is basic exemption limit of 2.5 lakh is also available for land sale

• Vivek says:

Based on Short term / Long Term capital gain. Capital gain MAY be added to your income. hence this may come under exemption limit.

For any further query contact me on 9907185386

7. Unnikrishnan says:

Good evening Sir,
My father in low has purchase a property at rate of 9Lac in 12/08/2005 Govt: value also the same. But He has transfer this property to his Daughter and son in low with compensation of 15Lac in 25/11/2013 (Govt: Value was-38Lac) So will it attract the capital gain tax ??? If Yes… Applicable on Agreement value or Govt: value / How much % will be applicable … So kindly help me to solve this please..

8. Abhishek Kumar Sinha says:

Hello Sir,

My questions are regarding, can I avail Capital Gain Exemption on my new property?

I have sold a land in the month of January, 2016 and now willing to purchase a flat/apartment which is under construction, as per the the builder agreement date will be mentioned on the agreement as May, 2107.

This new property which I’m willing to purchase costs 2 times more than property sold (in the month of January, 2016).

Therefore, I wish to add my son as co-applicant and take loan on his name for the additional cost of the new property.

Also, as per the Home Loan schemes offered by banks, if a woman is added in the list of applicant, my son will get a rebate of 0.05%.

My questions are mentioned below:

1 – Can I purchase a property of higher value than the sold property ?

2 – Can I purchase a property with my son taking loan on the remaining amount ? Is it important that my name on the agreement paper should appear as First Name and My Son as co-applicant.

3. Can I purchase a property with my son, my wife, daughter-in-law & myself as all being the owner of the property?

4. Is my name compulsory to be on the agreement as first applicant to avail the Capital Gain tax Exemption?

Looking forward to hearing on this ?

• Abhishek Kumar Sinha says:

I have sold a land in the month of January, 2016 and now willing to purchase a flat/apartment which is under construction, as per the the builder agreement date will be mentioned on the agreement

as May, 2017 and not 2107.

9. VIJAY says:

I have purschased a property in 2012 DEC now i want to sale in AUG 2016 at the cost of4980000.What would be capital gain & how much amount to be required to pay the tax and at what rate

10. Viren says:

Dear

I booked a flat in Aug 2011 and paid 90% amount.
I got a possession in Aug 2014 and paid 10% + Registry + Other charges.
I sold that in Nov 2015.

Now this is the short term or Long term capital gain.

Flat cost Rs 3140000
other charges Rs 500000
Home loan – Rs 1600000
Registry charges – Rs 315000
interest paid on loan Rs 500000

benefit taken on Home loan Interest Rs 350000

Circle rate at the time of sell is Rs 5450000

Pls help

11. abhay joshi says:

I (single owner) purchase a house on 15/5/2005 & sold it on 23/3/2016.
Now I booked an under construction house property with spouse as co- applicant investing all the proceeds from sale of first house.
Agreement registered on 26/5/2016.
Expected possession date March 2018
My spouse will also contribute 35% of entire consideration cost of new property.
Whether I can avail exemption on long term capital gain under section 54.
Pl guide

• Ishita Mukerjee says:

The Amount you have invested for the new property can be claimed as deduction u/s 54

12. S K GHOSH says:

I have bought a plot of land ( at kolkata) in the year 2000 for Rs. 1,00,000/-on co-operative basis . Now construction of Flat is going on, costing Rs. 20,00,000/- and same will be completed very soon. Now I want to sell the Flat for Rs.50 00 000 and to bye another flat in my convenient place. Can I avail exemption of Long term capital gain tax , if I sell my flat immediately. . If so, which year (2000/2016) will be considered for calculation of EXEMPTION OF LONG TERM CAPITAL GAIN TAX ? Pls reply. Thanks.

13. K.Suryanarayanan says:

How to calculate capital gain on purchase and sale of shares, if purchase date and price not known, it is demat form and it has been sold.

• bemoneyaware says:

You can get details from the broker or demat statement.
If you hold shares for more than 12 months it is long term capital gain and free of tax.
If you hold shares for less than 12 months it is added to income and taxed as per your income slab.

14. Subash says:

I bought a flat in Nov 2011 for Sale deed 24 lakhs , i took bank loan for 20 lakhs and paid in cash 4 lakhs , and now selling it for 27 Lakhs in July 2016, the reason for sale is becaouse i moved to different city and the locality the flat is situated is not doing good in the market. Not much of an increase in the square foot rate.

When i do the capital gain calculation it is coming out in negative. What does this mean and what is the impact of this , can any one help.

• bemoneyaware says:

It means that you have capital loss. You don’t have to pay and you can carry forward your loss.
More details in our article Capital Loss on Sale of House
In case of Loss also Income Tax Act allows one to set off loss(es) and/or carry forward of income under sections 70-80. The process of setting of loss on income (on any kind of income – income from other sources, real estate) and their carry forward is covered in following steps:

Step 2 If Loss cannot be offset under Step 1.Inter head adjustment in the same Assessment Year.
Step 3 If Loss cannot be offset under Step 1 and 2, Carry forward of a loss.
For Loss of Income from Capital Gains

Basic

15. Rahul says:

Hello ,
I had purchased a Residential PLOT in the year 2012 and sold it in the year 2016

Registry date (Buy) – 12-July-2012 – Buy price Rs. 33,00,000.00 ( Includes stamp duty and registration )
Sale Date – 12-May-2016 – Sale price Rs. 50,00,000.00
Difference betweem sale and indexed purchase price: 642605.63

Now , I have bought a new residential plot.

New plot Registry date (Buy) – 13-Jun-2016 – Buy price Rs. 54,00,000.00 ( Excludes stamp duty and registration )
stamp duty and registration – Rs. 4,00,000.00
Power backup and maintanance cost to builder – Rs. 2,50,000.00
Foundation and boundary – Rs. 2,00,000.00

My question is –

Will this new residential plot stamp duty, registration, Power backup and maintanance cost,Foundation and boundary (4L + 2.5L + 2L = Rs. 8,50,000.00) expences take care of the capital gain of Rs. 642605.63?

Thanks!

• Rahul says:

Guys can anybody help me in this regard?

16. Ganesh says:

Hi ,
I had purchased under construction flat in the year 2002 and sold it in the year 2015

5July2002 – Agreement – 660420 ( Includes stamp duty and registration )
4Jan2003 – Possession

Nov13 – Apr14 – Major repairs carried out by the society – 18000

21Oct2015 – Sale agreement – 6200000

21Nov2015 – Paid 1% agent fees – 61000
21Nov2015 – Paid to society – 12800

Difference between sale and purchase ( 6126200 – 660420 )= 5465780

CII of the Purchase Year: 2002 month: Jul : 447
CII of the Sale Year: 2015 month: Oct : 1081

Purchase Indexed Cost:1597123.09
Difference between sale and indexed purchase price: 4529076.91
Long Term Capital Gain Tax with indexation (at 20%):905815.38

Now , I have invested 20 Lacks in a pre launch property.

Will this take care of the capital gain ?
Will I still have to put the balance of 4529076 which is approx. 25 Lacks into Capital Gain Account in Nationalized Bank

Is there any effect of the major repairs on the capital gain ?

17. Shantanu says:

Hi,
I was calculating for Real estate.
As per my findings, shouldn’t the formula for Taxable capital gain be

= Long Term Capital Gain – Indexed Cost of Acquisition.

Taking example;
Purchased property – 30,00,000 in 2000
Sale value – 2,00,00,0000 (2 crores) in 2016

Indexed cost of acquisition = 30,000,000*(406/1125) = 83,12,807.88
Long term Capital gain = 2,00,00,000.00 – 83,12,807.88 = 1,16,87,192.12
Taxable Capital Gain = 1,16,87,192.12 – 83,12,807.88 = 33,74,384.24
Tax @20% = 33,74,384.24 * 20% = 6,74,876.85

The above calculation is based on findings from different websites.

Kindly let me know if there is any mistake.

• bemoneyaware says:

Please let is know the websites where you found the info.
Example from MintHow to calculate the indexed cost of property acquisition
Say, you bought a house in 2001-02 for Rs.25 lakh, and then constructed another floor for Rs.10 lakh, in 2005-06. Then, in 2013-14, you sold the house for Rs.90 lakh. As the property was held for more than three years, it will be considered a long-term capital asset. So, you should first calculate the indexed cost of acquisition by applying CII on the cost of purchase, i.e., Rs.25 lakh. You can find the CII values on http://www.incometaxindia.gov.in. In the example, CII is 426 and 939 for the years of purchase and sale, respectively. So, indexed cost of acquisition would be Rs.55,10,563 [Rs.25,00,000 * (939/426)]. In the same way, adjust additional construction cost against inflation. CII for the year in which the new floor was added is 497. So, the indexed cost for this will be Rs.18,89,336 [10,00,000 * (939/497)]. Hence, the total cost of property acquisition would Rs.73,99,899 (Rs.55,10,563 + Rs.18,89,336). Accordingly, your LTCG would be Rs.16,00,101 (Rs.90,00,000 – Rs.73,99,899). This is the amount on which LTCG tax will apply.

In your case from our calculator
Investment Type:Real Estate

Time between :16 years 34 days

Gain Type: Long Term Capital Gain

Difference betweem sale and purchase price: 17000000

CII of the Purchase Year: 2000 month: Apr : 406

CII of the Sale Year: 2016 month: May : 1125

Purchase Indexed Cost:8312807.88

Difference betweem sale and indexed purchase price: 11687192.12

Long Term Capital Gain Tax with indexation (at 20%):2337438.42

18. Sunil Khandelwal says:

Doesn’t let me select year 1016 for date of sale.

• Sunil Khandelwal says:

• bemoneyaware says:

Sir updated the calculator for 2016. Thanks for informing us

19. Hajara says:

My husband bought a land for 17,000/ in 1988. He died . My son And i became legal heirs. If i sell that land for 25 lac now and use half of it for his wedding, how much capital gain tax i must pay

20. Venba says:

Sale deed for purchase of my flat is dated 10-Mar-2006, but took possession of the same from the builder in Nov 2006. Should I consider CII for year of purchase as 519 (ie FY 2006-2007 based on flat possession date) or 497 (ie FY 2005- 2006 based on registration date) when I calculate the indexed cost of acquisition?

• bemoneyaware says:

There is major confusion with it.
Date of purchase of the house for the purpose of claim-ing deduction u/s.54 would be the date on which the assessee takes possession of the house and not the date of registration of the sale deed

21. Krishnan says:

I was using the calculator for determining capital gains on the following inputs
Debt mutual fund
Purchase price 10
Sale price 11.7446
No of units 29990
Date of purchase 30 Mar 2012
Date of sale 03 Apr 2014

Results
Investment Type:Debt Mutual Funds
Time between :2 years 4 days
Gain Type: Long Term Capital Gain
Difference betweem sale and purchase price: 52320.554000000004
CII of the Purchase Year: 2012 month: Mar : 785
CII of the Sale Year: 2014 month: Apr : 1024
Purchase Indexed Cost:391207.13
Difference betweem sale and indexed purchase price: -38986.58
Long Term Capital Gain without indexation:5232.06
Long Term Capital Gain with indexation:-7797.32

The last two lines created a confusion as the word tax was missing. Please make the changes accordingly.

A wonderful tool otherwise

• bemoneyaware says:

Thanks for input. Will update it.

22. Shaheen says:

Dear Sir/Mam

I have booked SECOND house in January 2014. Registration & Physical Possession of SECOND HOUSE have been completed in March 2016.I have sold a plot in March 2016. This Plot was purchased in September 2011. My question is Long term capital gain tax on sell of Plot would be exempted as i have registered second home in March 2016 itself. I mean Purchase of second property will be counted from date of booking (Date of Builder-Buyer Agreement) or date of Registration and Physical Possession?

• santosh kumar says:

i have purchesd land in 3rd july 2006 ,make house with bank loan of 5 lakh,as on today 4 lakh i have to pay to clear the bank loan , also invest in garden boundry and more rooms with invcest of 12 lakh . now i am saling same in 48 lakh , can you advice how much capital gain i have to pay .

23. Bala says:

I have purchased property in 2003 April 7,50,000 ,taken home loan 5L.But
I closed it Aug-2003 itself .

Now I enter into Join Venture 50-50% mode by May-15.I have taken 3 home .Plan to occupy 1, sold 2 .Now I sold 1 and I got L39.57 , expected income would be around 65L(Total would be 1Cr) if I sold another home.

Meanwhile I have taken 2nd Home cost of 51.50 L I july 2015 registered .I have taken home loan 39.85 L .Also I have taken cultivation land in my my native which is cost me 14L+1REgistration cost.

In 2011Dec I have taken one home around 48L ,still I am paying EMI, yet to pay principle 23.6 L .

Could you please let me know if I close the both loan, still I need to pay LTCG or what would be the LTCG(Long Term capital Gain).

If my LTCG after indexation comes to (@20%) – Rs. 20 Lac,
Purchase old flat : 2010 DEC
Sold Old flat : 2016 Feb

** Buying Flat : March 01 2016 ——-
Can I invest for 20 Lac residential flat ( Ready possession) : With

A. 5 Lac cheque to builder.
B. 15 Lac Home Loan.

** Will the remaining 15 Lac I have from STCG proceeds can be used as per or for my personal needs.
** Or will I need to invest the STCG proceeds to the full 20 Lacs.

** If I plan to invest for flat in NOV 2016? How will I need to maintain the funds received as STCG & by when should such proceeds be declared in ITR.

Thanks,
Patrick

CORRECTION: Please replace STCG with LTCG ***********

25. Nikhil says:

To calculate the capital gains against a plot sale, which was purchased by taking loan from bank, Can I add the interest paid to the bank to the cost of acquisition while calculating the capital gains?

26. srikanth says:

Just do the math urself using simple and clear formula mentioned in below link.

http://wealth18.com/cost-inflation-index-chart-table-1981-to-2014-for-income-tax-capital-gain-purpose/

Get the updated CII Index from here.
http://www.bemoneyaware.com/blog/useful-info/cost-inflation-index-table/

27. simon says:

When possible, kindly update the year options to 2016. While trying to use the capital gains calculator for a sale in Jan 2016 ,the year options are only till 2015.So calculation of capital gains tax for sales in 2016 will be difficult.Thanks for your website

• bemoneyaware says:

Thanks for the suggestion we had ignored Jan – Mar 2016. Will do so ASAP.

28. James says:

My father purchased a property in 21/5/2010 worth of 283000 and he registered the property to me through sales deeds not through gift, in sales deeds property value is written as 718000 on 30/4/2013. Income notice has come regarding capital gain tax. Is there any way to prove that there is no money transferred in this case and it’s been registered to son by father and if so will it save the capital gain tax?

29. Abhishek says:

Hi . Recently While conversing with one of my friend , I was told that If I hold a residential household property and sell it after 3 years and use the LTCG to buy Stock ( Equity) , I could save from paying tax with one of the Section 54 . Could you please clarify on this ? Bought a Household property 2006 and intend to sell this year 2016.

• bemoneyaware says:

Short answer. No you cannot save tax on selling residential property by investing in Stocks or Equity.
Detailed explanation is given below.
If a property is sold after three years from the date of purchase, the profit is treated as a long-term capital gain and is taxed at 20% after indexation. The indexation of purchase price helps to reduce the net capital gain, thereby slashing the tax burden for the seller. Our article How to Calculate Capital gain on Sale of House? discusses it in detail.
When you sell your house, you are liable to pay tax . The tax paid on the amount of capital gains is called Capital Gains Tax. The sale proceeds will be calculated on the basis of the valuation adopted by the state’s Stamp Duty and Registration Authority and will not be the amount mentioned in the deed of conveyance. This is intended to cover the cases where a portion of the sale price is received by the seller as unaccounted for cash.You can save the capital gain tax in 3 ways.
Purchasing Another Property : The Income tax act allows exemption on capital gains to the extent these have been invested in purchasing a new house property.
You have to invest the amount of capital gains and not the entire sale proceeds.
The sale proceeds should be invested only in a residential property, not a commercial property or a vacant plot of land.
You should not own more than one house and in India (from AY 2015-16)
You can claim tax exemption under Section 54 on the long-term capital gain on the sale of a house by using the entire profit to either buy another house within two years or construct one in three years. If you had already bought a second house within a year before selling the first one, you could still avail of the tax exemption. The date of commencement of the construction of the new house is not material. To get the benefit of section 54,you must construct the new house within the prescribed period from the date of sale of the old house.
Section 54F gives you exemption from the capital gains if you sell any asset. But, the new property is a residential property.
By Investing in Capital Gains Account Scheme : If capital gains have not been invested in a property, the gains can be deposited by opening a capital gains account in a PSU bank or other banks as per the Capital Gains Account Scheme, 1988. This deposit can then be claimed as an exemption from capital gains, and no tax has to be paid on it.
Purchasing Capital Gains Bonds : If you do not intend to purchase another property, then tax can be saved on capital gains, buy investing them in certain bonds under Section 54 (EC) within six months of selling the house . Bonds issued by the National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC) have been specified for this purpose. These are redeemable after 3 years and must not be sold before the lapse of 3 years from the date of sale of the house property. However, you can invest only up to Rs 50 lakh.

30. Sornam says:

Hi, My parent’s purchase 2 BHK flat in Mumbai Suburbs in Dec 13 1984 for INR 135000 and sold this flat in Dec 29, 2015 for INR 83,50,000. My mother is 61 years old. We have recently submit Form 15H for TDS exemption. Please find below the calculation, I see a property gain INR 1436504. How much tax my mother has to pay, and if she files tax returns will it be refunded? Please advice

Investment Type:Real Estate

Time between :31 years 23 days

Gain Type: Long Term Capital Gain

Difference betweem sale and purchase price: 8215000

CII of the Purchase Year: 1984 month: Dec : 125

CII of the Sale Year: 2015 month: Dec : 1081

Purchase Indexed Cost:1167480

Difference between sale and indexed purchase price: 7182520

Long Term Capital Gain with indexation (at 20%):1436504

31. Sornam says:

Hi, My parent’s purchase 2 BHK flat in Mumbai Suburbs for INR 135000 and sold this flat in Dec 29, 2015 for INR 83,50,000. My mother is 61 years old. We have recently submit Form 15H for TDS exemption. Please find below the calculation, I see a property gain INR 1436504. How much tax my mother has to pay, and if she files tax returns will it be refunded? Please advice

Investment Type:Real Estate

Time between :31 years 23 days

Gain Type: Long Term Capital Gain

Difference betweem sale and purchase price: 8215000

CII of the Purchase Year: 1984 month: Dec : 125

CII of the Sale Year: 2015 month: Dec : 1081

Purchase Indexed Cost:1167480

Difference between sale and indexed purchase price: 7182520

Long Term Capital Gain with indexation (at 20%):1436504

• bemoneyaware says:

The calculations are fine.
As the Long term capital gains are more than exemption limit for senior citizen 3 lakh so the capital gain of 14,36,504-3,00,000 ie 11,36,504 will be taxable.
-Have you got the house renovation done some time, if yes if you have records you can claim it. It would bring down the tax.
When you sell your house, you are liable to pay tax . The tax paid on the amount of capital gains is called Capital Gains Tax. The sale proceeds will be calculated on the basis of the valuation adopted by the state’s Stamp Duty and Registration Authority and will not be the amount mentioned in the deed of conveyance. This is intended to cover the cases where a portion of the sale price is received by the seller as unaccounted for cash.You can save the capital gain tax in 3 ways.

Purchasing Another Property : The Income tax act allows exemption on capital gains to the extent these have been invested in purchasing a new house property.
You have to invest the amount of capital gains and not the entire sale proceeds.
The sale proceeds should be invested only in a residential property, not a commercial property or a vacant plot of land.
You should not own more than one house and in India (from AY 2015-16)
You can claim tax exemption under Section 54 on the long-term capital gain on the sale of a house by using the entire profit to either buy another house within two years or construct one in three years. If you had already bought a second house within a year before selling the first one, you could still avail of the tax exemption. The date of commencement of the construction of the new house is not material. To get the benefit of section 54,you must construct the new house within the prescribed period from the date of sale of the old house.
Section 54F gives you exemption from the capital gains if you sell any asset. But, the new property is a residential property.
By Investing in Capital Gains Account Scheme : If capital gains have not been invested in a property, the gains can be deposited by opening a capital gains account in a PSU bank or other banks as per the Capital Gains Account Scheme, 1988. This deposit can then be claimed as an exemption from capital gains, and no tax has to be paid on it.
Purchasing Capital Gains Bonds : If you do not intend to purchase another property, then tax can be saved on capital gains, buy investing them in certain bonds under Section 54 (EC) within six months of selling the house . Bonds issued by the National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC) have been specified for this purpose. These are redeemable after 3 years and must not be sold before the lapse of 3 years from the date of sale of the house property. However, you can invest only up to Rs 50 lakh.

• Kishor Dongare says:

Capital gain can be deposited in bank max upto-3 years.

At the time of closure of all accounts, the depositor will have to produce specific authority letter/ certificate from the Income Tax Officer of the respective jurisdiction. The closure would be allowed on the terms mentioned in the letter of authority.

32. riya says:

Hi.

One of my friend was trading on shares actual managing my account with 25 lack capital. And this year profit was around 30 lacks.
How much tax do I need to pay

Please explain how the tax will calculate like 25+30 = tax or taxable income on only 30 Lack

2 Nd after paying tax from 2016 ifcapital was 50lakh and if we made 100% profit the tax only paid on profit

33. Ashok says:

I have purchased a land at a cost of Rs 30,000/-in 1982 and sold it in this year at Rs 40,00,000/-. Please tell me how much tax will I pay.

34. Subroto Ghosh says:

I have purchased a house in 1990 @Rs1,20,000 and now selling the same @Rs26,27,000 in 2015. But I have also done lot of construction approx Rs5,00,000 after I have purchased my property in 1991. How will the same taken into consideration for computation of Capital Gain. And how much will be my LTCG.

35. Ashok says:

I have purchased a land at a cost of Rs 200/-in 1965 and sold it in this year at Rs One Crore. Please tell me how much tax will I pay.
You have replied to me, But I am to say that I want to purchase some lands at a cost of Rs 60,00,000 out of that. So how much shall i pay Income Tax.

36. Ashok says:

I have purchased a land at a cost of Rs 200/-in 1965 and sold it in this year at Rs One Crore. Please tell me how much tax will I pay.

• bemoneyaware says:

Since land has been acquired prior to 1 April 1981, you have an option of taking the actual cost of acquisition (Rs.200) or the fair market value of the property as on 1 April 1981. Since it is an old property acquired before 1 April 1981, CII of base FY82 (i.e. 100) should be considered for cost of acquisition. LTCG will be computed as difference between net sales proceeds and indexation cost of acquisition and improvement, if any.
Capital gain calculation assuming purchase price.
Time between :34 years 8 days

Gain Type: Long Term Capital Gain

Difference betweem sale and purchase price: 9999800

CII of the Purchase Year: 1981 month: Apr : 100

CII of the Sale Year: 2015 month: Apr : 1081

Purchase Indexed Cost:2162

Difference between sale and indexed purchase price: 9997838

Long Term Capital Gain with indexation (at 20%):19,99,567.6

37. rajashree dikonda says:

sir,
mera interest income & short term capital gain income 250000 se kum hai to mujhe INCOME TAX RETURN file karna padega kya.so pls tell me urgently.

• bemoneyaware says:

Aapka total income kitna hain? Income tax sum of 5 different types of income par lagta hain

38. Aashish says:

I bought a property in 2011 for Rs 46 lacs and sold it in 2015 for Rs 60 lacs. Considering CII indexation of 785 in 2011-12 and 1081 in 2015-16, the indexed cost comes out to be around Rs 63 lacs, so I have negative capital gain.
Do I need to pay any capital gain tax here?

If not, can I use this Rs 60 lacs received in making some non-real estate buy like buying a car and planning an abroad vacation without violating any tax law?

Also, I have paid 1% TDS in this transaction, as i have negative capital gain, is TDS applicable for refund to me?

• bemoneyaware says:

Yes you do not need to pay any capital gain as you have a loss of around 66 thousand
Long term capital loss is 20% of the loss i.e 20% of 3 lakh
So you need not invest sale proceeds in buying the house or investing in bonds under section 54, 54F, 54EC of income tax or by putting in Capital Gain Account Scheme (CGAS)
The Long term capital loss can be adjusted only with the long term capital gains. So if you cannot adjust it this year you can carry forward it to the next eight years and adjust if there is any long term capital gains. our article Capital Loss on Sale of House discusses it in detail with examples.

Yes you can ask for refund of TDS

• Aashish says:

39. Amit says:

My father bought land for 1 lakh (1991) and sold for 36 lakh (2015)

It was in the name of myself and my brother .

I got 18 lakh and another half gone to my brother account.

I have used this money to settle my home loan in 2015 for 14 lakh (Flat booked in 2012 – Home loan started in 2013)

I have left with 4 lakh remaining which i will use to settle the demand of the builder for the same flat – 2012.

I am in 30% bracket of around 13 lakh income group (paying 1.6 lakh income tax)

– Will my above transaction that i have used land proceeds money towards settling my home loan will qualify for NO capital gain property tax on me?
– I have left with 4 lakh in saving account,can i use it for short term FD in bank,as demand letter from builder is very slow?

• bemoneyaware says:

No sadly paying home loan does not take care of capital gain on selling of land/property.
Your capital gain is 611356.78 . Detailed calculations is given below.
Investment Type:Real Estate

Time between :24 years 6 days

Gain Type: Long Term Capital Gain

Difference betweem sale and purchase price: 3500000

CII of the Purchase Year: 1991 month: Apr : 199

CII of the Sale Year: 2015 month: Apr : 1081

Purchase Indexed Cost:543216.08

Difference between sale and indexed purchase price: 3056783.92

Long Term Capital Gain with indexation (at 20%):611356.78

• Amit says:

Thanx a lot

My Mother has purchased a house in 1988 for Rs60,000/- and sold it at Rs22,00,000 The difference after indexation is Rs18lakhs. The LTCG (20%)is coming around Rs3.6lakhs.
Now my father has an old residential house in another city and we want to construct it I have following query
1-Will my mother get benefit of Tax exemption for construction of this house.
2-If construction is done by builder what proof do we require for tax exemption purposes.
3-My mother doesn’t file ITR so will she need to file for the same.

• bemoneyaware says:

1. The capital gain should be invested in the purchase of another house either one year before or within two years from the date of transfer, or used for construction of a house within three years of the date of transfer.
2. Paying my cheque to builder would be proof, bills etc.
3. As LTCG is more than 2.5 lakh/3 lakh the exemption limit she would have to file ITR if she is less than 80 years of age

Thanks for your kind revert, one small query is still left
According to below :
Difference betweem sale and purchase price: 2167222
Purchase Indexed Cost:401366.57
Difference betweem sale and indexed purchase price: 1825633.43
Long Term Capital Gain with indexation (at 20%):365126.69
My mother age is 65 what will be her tax computation.
And how much she needs to pay tax.

• bemoneyaware says:

long-term capital gain attracts a flat tax rate of 20% it is not dependant of one’s age.
There is no special treatment while taxing capital gain income of of an senior citizen. except of getting higher slab of initial exemption as provided by Finance Act.
You cannot claim regular tax deductions against long-term capital gains. Tax on such gains has to be computed separately. If your total income is below the tax exemption limit , only the part of long-term capital gains above the exemption limit will be taxed.
The Income Tax Act exempts the capital gains from the sale of a house if the taxpayer invests the gains in a residential property within two years from the date of sale or constructs another house within three years from the date of sale. This means, you cannot invest in a commercial property or land to save tax – you have to necessarily buy residential property only. If the property is under construction, the two-year period is further enhanced to three years. However, you should not own more than one house, besides the house you are investing in.

• bemoneyaware says:

Bhaskar apologies for wrong answer. We checked Only a resident individual/HUF can adjust the exemption limit against LTCG. Thus, a non-resident individual and non-resident HUF cannot adjust the exemption limit .
Ex:Mr. Kapoor (age 67 years and resident) is a retired person. He purchased a piece of land in December, 2010 and sold the same in August, 2015. Taxable long-term capital gain on
such sale amounted to Rs. 1,84,000. Apart from gain on sale of land, he is not having any other income. What will be his tax liability for the year 2015-16?
*
For resident individual of the age of 60 years and above but below 80 years, the basic exemption limit is Rs. 3,00,000. Further, a resident individual can adjust the basic
exemption limit against LTCG. In this case, LTCG of Rs. 1,84,000 can be adjusted against the basic exemption limit. In other words, Mr. Kapoor can adjust the LTCG on
sale of land against the basic exemption limit. Considering the above discussion, the tax liability of Mr. Kapoor for the year 2015-16 will be nil.

41. Roopesh Kumar Jain says:

Dear Sir,
I bought a 3BHK flat near Whitefield Bangalore that was registered on December 19, 2006 for Rs. 6,90,000 with the registration charges being around Rs. 59,000. I had taken a home loan of Rs. 8,90,000 for this purpose of which about Rs. 2,90,000 is still outstanding. I bought another independent house that was registered on November 3rd 2014 for Rs, 44,00,000 and I have a loan of Rs. 43,50,000 running on this current house (Both the homeloans are jointly in the name of me and my wife). To reduce the burden of this new home loan I decided to sell my flat bought in 2006 for Rs. 32,00,000 and the registration will take place by this month end (December 2015). I want to pay the proceeds of this sale to the new loan account to reduce the burdern. Please let me know if I am liable to pay Long term capital gains tax on this transaction if I pay the entire proceeds (that is after deduction of about 2.9 lakhs of my old loan outstanding) towards my current loan of 43.5 Lakhs. If yes, how much would be my tax burden and any other way that I can reduce my tax burden as well as loan burden.

42. satyanarayanagrawal says:

My mrs has received Rs 49.5 lacs on release of her heritage property of her grandfather in favour of brothers son. Property is in Chennai west Mamblam.Property was purchased in 1940.After that industrial shade was constructed on it in 1965.share of my wife is 20% in entire ploot of 4366 sq.feet.what is capital gain tax? how to save it?Amount is received in Nov.2015.

43. Abhishek says:

Hello

I have purchased a new property (flat in apartment – under construction expected possession in 2017) in the month of October, 2015 and will sale the existing property within a year span of time (i.e. August, 2016).

Please let me know if i can avail the benefit of Long Term Captial Gain by closing the loan account of the property purchased in October, 2015 with the remuneration earned after selling the existing property.

• bemoneyaware says:

Sir long term capital gain on real estate comes into play after 3 years of holding. As your holding period would be less than 3 years you would have to pay short term capital gains.

44. Kabir says:

Hello Sir,

I have purchased the property in year 2014 Feb and I will be selling the same may be in few months.

I need to know, I might be making profit of near about 15 lks.

So next time I will have to invest entire amount x+15lk to purchase Or I can utilize some amount for my personal use and for remaining amount I will go for purchasing another property.

Thanks,
Kabir Oberoi

45. Rajee says:

Hi , I have the following details.
Difference between sale and indexed purchase price: 985395.19 and Long Term Capital Gain with indexation (at 20%):197079.04. I am interested to construct my old inherited house after demolition, which shall cost 15 L. Shall I get the exemption OR I need to invest full sale price to get the exemption.

• bemoneyaware says:

To claim the capital gain:
You should purchase the residential house within a period of one year before or two years after the date on which the transfer took place or construct a residential house within 3 years of such transfer.
So yes you can claim Capital gain i,e 197079.04 to claim the exemption. You do not have to invest the sale price.

46. kirti says:

can anybody solve this problem? urgent

(B)Calculate for Mr. Joshi, sells the following capital assets during the previous year 2012-13 :
Particular Unlisted Shares House Property
Sale consideration 24,00,000 6,80,000
Year of acquisition 1992-93 1985-86
Cost of acquisition 2,90,000 18,000
Cost of improvement – 70,000
incurred in 1991-92

Note : Cost inflation index
Year Index
Given the cost inflation index during the previous years – 1981-82 :Rs. 100; 1985-86 : Rs. 133; 1991-92 : Rs. 199; 1992-93 : Rs. 223 and 2012-13 : Rs. 852 compute the income under the head Capital gains.

• bemoneyaware says:

Shares held in unlisted companies were earlier classified as LTCA if held for more than 12 months and were eligible for a concessional rate of tax at 20%. However, as per Finance Act 2014, these shares would now qualify as LTCA only if they are sold after 36 months instead of 12 months, which means that shares held for more than 12 months but less that 36 months would now qualify as STCA. The gain arising on such sale of securities would be taxed at progressive rates of tax as applicable, instead of the beneficial rate of 20%.
LTCG shall be taxable at flat rate of 20.6% (inclusive of education cess) plus surcharge, if applicable.
Difference between sale and purchase price: -2110000

CII of the Purchase Year: 1992 month: 223

CII of the Sale Year: 2012 month: 852

Purchase Indexed Cost:9169506.73

Difference between sale and indexed purchase price: -8879506.73

Long Term Capital Gain without indexation:-211000

Long Term Capital Gain with indexation:-1775901.35

For property
Financial Year of Purchase / Acquisition of the Immovable Property
A2 Cost Inflation Index for the Year of Acquisition 133
A3 Purchase Price of the Immovable Property 18000
A4 Add: Expenses relating to acquisition (e.g. brokerage, registration charges, legal expenses etc.)
A5 Total Cost of Acquisition of the Immovable Property 18000
A6 Indexed Cost of Acquisition of the Immovable Property [ A5 x C2 / A2 ] 115308
B. Improvement
B1 Financial Year of carrying out improvement(s)
B2 Cost Inflation Index for the Year of Improvement 199
B3 Cost of improvements carried out in the property 70000
B4 Indexed Cost of Improvement [ B3 x C2 / B2 ] 299698
C. Sale
C1 Financial Year of Sale / Transfer of Property
C2 Cost Inflation Index for the Year of Sale / Transfer 852
C3 Full value of consideration received for Sale / Transfer 680000
C4 Less: Expenses incurred on transfer of the property (e.g. brokerage paid, registration charges and legal expenses)
C5 Net Value of Consideration 680000
Reset Submit
Long Term Capital Gain [ C5 – (A6 + B4) ] 264994

47. Sriram says:

Hi

This is regarding a piece of land which was purchased by my brother and his friend, the property is in my brothers name, My brother passed away and he doesnt have any dependants since he did not marry.

The legal hiers are my parents

50% of the land need to be given to my brother’s friend, the property was purchased 20 years back for 7 lakhs and the current value is around 90 lakhs,

My brothers friend will register paying registration fee and i would like to know what will be the tax implication since here no money transaction has happened.

Appreciate if you can suggest best way to settle the process

48. sgb says:

Please define Purchase Price and Sell Price,
Example for 100 shares:
Net Purchase Price = Buy value[100 x rate]+ Brokerage + STT
Net Sell Price = Sell value[100 x rate]- Brokerage – STT

49. Vishal Patel says:

If shares purchased on 01-Jan-2014 and sold on 01-Jan-2015, it should be Long Term Capital Gain.
But this calculator says Short Term.

50. Sandeep Pawar says:

51. VENUGOPAL.P says:

Sir
I have purchased shares in 2012-13. I got loss in those shares. I did not mention these transactions in IT returns. I got notice from incometax dept. How can I produce these IT returns. I am a salaried person. Today has been made by my Drawing and disbursement officer. Please guide me how to file IT returns. Thank you very much sir.

The calculator sale date doesn’t show this financial year 2015 and only up to 2014. Please update the calculator. Also, you had indicated in your reply for one of my previous posts that non-indexed option of 10% tax for real estate sales is not allowed and only 20% tax with indexation allowed for Real Estate transactions for long term capital gain tax calculations. Please highlight this point when people select “real Estate Property” as the asset class for calculating long term capital gains tax for clarifications purpose

53. Meenakshi says:

Kindly Help me With My Query.
I Am Working Women
I Have Purched Flat At 1883575 ( Agreement Value )at Year 10 June 2005 at Bank Loan As On today No loan On The property.
I have Also Purched second Property 4990000/- ( Agrement Value) at Year 16/07/2014 Under Construction.
i haven’t included in the my above expenses like stamp duty,registration ,Car Parking
My Quatation is
I Sell My First Flat Around appr 7500000 and reinvest into New Under Construction Property around 800000/- my quatation is to avail tax exemption ?or else how much i will pay tax

54. Ranjan Kumar says:

Results
Investment Type:Real Estate

Time between :15 years 101 days

Gain Type: Long Term Capital Gain

Difference betweem sale and purchase price: 3050000

CII of the Purchase Year: 1999 month: Sep : 389

CII of the Sale Year: 2014 month: Dec : 1024

Purchase Indexed Cost:1055588.69

Difference between sale and indexed purchase price: 2395411.31

Long Term Capital Gain with indexation:479082.26

Now I want to know how I can save my tax. I am holding one more flat other than this flat which I am going to sale

• lalji says:

a open plot purchase Rs335000 april 2005 and sale 400000 in dec 2014 about capital gain tax

55. Vishakha says:

hii kirti,
very useful calculator. but it seems it doesnt take into consideration security transaction tax into account.

• bemoneyaware says:

Thanks for input.

56. A R Mahendra says:

You do not seem to have taken into account, the intermediate expenses involved, such as Registration, brokerage,taxes etc., before the property is sold. These expenses are taken into account towards the cost of the property and are NOT included in ‘capital gain tax’.

• bemoneyaware says:

Thanks for input. We have tried to make a general one so did not include it.
So you want the Registration, brokerage,taxes etc to be input which should be subtracted from the Selling cost or added to Purchase cost.

57. satya narayan says:

purchase of real estate in 1985 is 18000 & sales in 2008 is 80000, what will be the indexed purchase of it. I calculate , 80000*582(cii of 2008)/133(cii of 1985) = 350075 but your calculator displaying something else

• Kirti says:

Indexation is applied to Purchase Price so it becomes 18,000 * 582/133 =78766.91

Hence Difference between Sale and Indexed Pruchase Price in 2008 = 80,000 – 78766.91 = 1233.08
Long Term Capital gains on it would be 20% of Diff = .2 * 1233.08= 246 Rs

• satya narayan says:

ohhh thnk you sooooooooooo much I thought the indextion is applied to sales price thts why I faced problem……….

58. Uday says:

Thanks for the effort, this is big help. I need some clarification
I am in the process of selling my apartment purchased on 10th March 2003 for total consideration of Rs 12.48 lacs this includes Rs 1.5 lacs towards woodwork, painting etc. I am selling this in June 2015 for Rs 70 lacs + Rs 10 lacs towards fitting and fixtures ie total 80 Lacs
I have booked an under construction apt on 15th Sept 2014 (date of allotment) and hope to get possession by 31st Dec 2016. The cost is 95 lacs
I have already made payments of Rs 25 lacs from own funds and plan to pay the balance amount from the sale proceeds. Am I exempted for capital gains tax

Also if the possession for the new apt is delayed but I have made the payments will this be considered as payment r do I need to show registery for the new apt.

Also I understand that I need to buy an aot 1 year before or within 2 year after the sale, what dates are considered for buying is date of allottment when I paid the booking amount or any other

59. Vishal Goel says:

how the cost of acquisition will be computed if long term shares are sold in F Y 2014-15 and having following manner of purchase – >application money paid in 1992-93 > 1st call paid in 1995-96 > 2nd call paid in 1988-99 > Final call paid in 2004-05 I want to know how indexation will be applied?

• Kirti says:

There is no Long term capital Gains on Shares if Shares are listed on the BSE/NSE and STT have been paid.
Indexation benefit is for non equity assets like Property,Debt Mutual Funds, Gold or Gold ETF

60. V.P.KAKKAR says:

How to calculate Capital gain if a particular Share(Scrip)and Mutual fund has been purchased and sold off at different periods of a Financial year.

61. sankalp says:

Dear Kirti,

Hello,kindly help me with my query please.

1. I am a NRI & have a flat in India since 2005 mid which I want to sell.(1.35 is the estimated sale price and 22.41 is the purchase price in 2005)& 20% capital gain tax of the estimated sale price is coming to be 17.7 Lakh Rupees.

I still haven’t included in the above calculation my other expenses like stamp duty, Registration, car parking charge, mortgage broker fees, mortgage repayments to bank, maintenance charges, house tax which are roughly 13 Lakh.
1. Can I deduct this 13 Lakh from 17 Lakh capital gain tax? How is this calculated? Are all the above mentioned expenses deductable?

2.I also have a joint share of a plot(still paying mortgage) and another flat with my brother in India.
3.I wish to sell my flat and pay the plot mortgage 70Lakh. Will I be eligible to apply for tax exemption if I do this?
4.Can I bring remaining amount 60 lakh to Australia to pay for mortgage here of my principal place of residence?
5. Or investing the remaining amount/whole amount in another residential is the other option?
5. Please advise what will be best thing I can do save the capital gain tax or in my situation

Thanks a lot for your help and time
Regards,
Sankulp

62. soumojit says:

I hv purchased a flat in 2010-11 wth a price of 29 lakhs. In this year april, 2015 selling the same at a price of 38 lakhs. Can you pls tell me what is the capital gain? I think it will be a loss. If it is a capital loss, then can i claim the same as tax exemption from my taxable income of the year?

63. Nikhil says:

Purchase pries- 700000 Ex-52500 Purchase date- 04-05-2005
sale Pries -3756000 Sale date April -2015
Please give me Long term capital Gain.

• Kirti says:

Cost Inflation index(CII) for FY 2015-16 is not available. As you sold in Apr 2015 so we need Inflation index for FY 2015-16.
Based on last year indexation I can tell you approximate gains. As we expect CII of this year to be higher than last year your gains would be lower than what is shown below.
Details:
Purchase Price + Expenses: 752500 and Sale Price :3756000 . Considering sale date to be 30 Mar 2015.
Investment Type:Real Estate

Time between :8 years 335 days

Gain Type: Long Term Capital Gain

Difference between sale and purchase price: 3003500

CII of the Purchase Year: 2005 month: May : 497

CII of the Sale Year: 2014 month: Apr : 1024

Purchase Indexed Cost:1550422.54

Difference between sale and indexed purchase price: 2205577.46

Long Term Capital Gain with indexation:441115.49

64. Prasanna says:

I have purchased a house for 94 Lakhs, with loan for Rs 75,00,000 i already had a flat which i had purchased in 2007, by paying 19lakhs,now i have sold the flat in march 2015 for Rs 40,000,00/- ,from the money which i got by selling my flat i have repayed Rs, 20,000,000 towards loan (bank).

As per Capital Gain Tax calculator, below are the details of the same.

Investment Type:Real Estate

Time between :6 years 99 days

Gain Type: Long Term Capital Gain

Difference betweem sale and purchase price: 2100000

CII of the Purchase Year: 2007 month: Dec : 551

CII of the Sale Year: 2014 month: Mar : 939

Purchase Indexed Cost:3237931.03

Difference betweem sale and indexed purchase price: 762068.97

Long Term Capital Gain with indexation:152413.79

Out of 40 Lakhs on selling my flat , 20 lakhs i have paid to Bank towards loan prinicipal and balance amount iam using for constructing additional floors on the newly bought house .

My question is should i re invest the complete sale value in real estate to avail tax exemption, or only the capital gains indexation value.

Although i am utilizing the balance amount in construction of additional floors, my contractor doesnt want to give me any bills for the construction cost of additional floors.

65. Amiya banerjee says:

brokerage of share can I minus from purchase value , for short term capital gain Tax ? if I bought 01 share Rs 100 brokerage is rs 2 and sold
rs 120 brokerage is Rs 2.4 . profit Rs 20 , for short term c.tax canI
minus brokerage from profit Rs2 +Rs2.4 = Rs 4.4 SC ,stamp duty,can minus

• Swagatika Panigrahi says:

Dear Mr Amiya, the purchase value of shares will include the brokerage paid on the same, hence in your case the purchase value is Rs 102 and the brokerage on sales would be reduced from sales value ie the net sales is Rs 117.6. Hence the short term capital gain is Rs (117.6-102=15.6).

And depending upon the nature of transaction, the Stamp duty borne by you can be added to the purchase value or reduced from sales value.

66. v.r.talwalkar says:

pl suggest books on capital gain

67. Puttaraju S says:

STCG on equity and equity oriented funds are taxed @ 15%, STCG on other assets are taxed as per slabs.
Now can a loss from one be set off against the other? Even if they are under different tax brackets?

• Kirti says:

Short ans is yes. In the same Assessment year you can adjust loss among different types of Income.
Now for the long ans from Capital Loss on Sale of House
In case of Loss also Income Tax Act allows one to set off loss(es) and/or carry forward of income under sections 70-80. The process of setting of loss on income (on any kind of income – income from other sources, real estate) and their carry forward is covered in following steps:

Step 2 If Loss cannot be offset under Step 1.Inter head adjustment in the same Assessment Year.
Step 3 If Loss cannot be offset under Step 1 and 2, Carry forward of a loss.

Loss from transfer of a short term Capital Asset can be set off against gain from transfer of any other capital asset (Long Term or Short Term) in the same year.
Loss from transfer of a Long term Capital Asset can be set off against gain from transfer of any other long term Capital Asset in the same year.
If there is still loss it can be carried forward to next assessment year. In the next year, the STCL can be set off against any gains from transfer of any capital asset (Long term or Short term) and the LTCL can be set off against gains from transfer of long term capital asset only. Any unabsorbed loss after such set off can be further carried forward to next assessment year. A loss for a particular year can be carried forward only if the income tax return for that year is filed by the due date. Capital loss computed in an assessment year can be carried forward for eight assessment years and set off as above.

• Swagatika Panigrahi says:

STCG is taxed @ 15% separately than the other CG items.But the Act prescribes that the STCL arising out of the same source ie. sale of equity shares can be set off against the taxable short-term capital gain (STCG) or long-term capital gain (LTCG), if any, resulting from sale of any capital asset in the same financial year. If it cannot be done in the same financial year, then the balance STCL can be carried forward to subsequent eight years.The said STCL can be carried forward only and only when the ITR is filed on or before time.

Hi,

I had purchased a flat when it was in an underconstruction in March 2012 and got the possession in March 2013. Now I am planning to sell my flat in March 2015. I took the home loan so paid huge interest to bank, now I would like to understand the following before taking a decision to sell the property. Kindly help me with this-

1. to decide the short term and Long term gain, booking date is considered or possession date is considered
2. To calculate the net gain will they consider paid interest till date, example (sell price – purchased price – interest paid)
3. If I invest in another property, can I get the tax relief

Regards,
Ashish

• Kirti says:

Sorry for delay in replying Ashish. Somehow the comment got missed.
Determining the date of purchase of flats under financing schemes is a matter of debate and there are conflicting views on the subject.
One view is that while calculating capital gains, the date of allotment is taken as the date of acquisition.By getting the allotment letter, the individual is construed to have received the right to that property; the payment of instalment is merely a follow-up action. Therefore, in your case, the capital gains should be long term in nature on the basis of the date of allotment. The allotment letter should have the details of the flat in the proposed building, your name as the purchaser of the property or one that gives you unconditional rights to dispose of the property.

But if you have availed home loan please note that
If you took property on home loan, claimed the tax deduction for the principal under Section 80C and property is sold within five years, the tax benefits will be reversed. The entire tax deduction ,for repayment of principal component of the home loan ,claimed in earlier years under section 80c , will be considered as your income (in addition to capital gains) in the year in which you sell the property. However, the housing loan interest deduction claimed under section 24(b) won’t be reversed.
These are discussed in detail in out article How to Calculate Capital gain on Sale of House?

• Kumar says:

Dear Sir,

I bought a land in the year 2004/April for around Rs.135000/-. I sold it in 2013/Sept for Rs.2640000/-. I started constructing the house from Nov/Dec, 2013 purely from this proceeds. Construction completed in 2014/Sept. I have not filed my IT return for the year 2013-2014 yet. Pl. let me what is my tax amount and when shd I have to file my return.

• Swagatika Panigrahi says:

Dear Mr Kumar, if the purchase value and sales value given by you is correct ie( Rs 1,35,000 and Rs 26,40,000 respectively), then your Capital gain is Rs 23,75,906. In the financial year of 2013-14, you should have transferred the entire capital gain amount to another bank account called Capital Gains Account Scheme. The tax rate in your case is @ 20% on the capital gains. Please contact for immediate action.

• sgb says:

On Mr Kumar: If the whole Sell proceed[26.4L]is kept in a bank under Capital Gains Account Scheme and Mr Kumar utilizes the whole proceed to construct a new house, then will he get max. 2Yrs[Sep2015] of time to complete the construction[date of House completion certificate from Corporation] from the date Sell[Sep2013]?

69. Puru Surti says:

informative website. I have a question- In case of property deal, does one have to re-invest whole sells proceeds or only capital gains to get tax benefits? Eg. property bought in 2009 at 35 lakhs (purchased index cost -57 lakhs)and sold for 83 lakhs in 2015. Here, capital gains (difference in sell cost and purchased index cost) is 27 lakhs. To get complete exemption, shall him reinvest only 27 lakhs or 83 lakhs?

• Kirti says:

Hello Puru,
Tax is only on capital gain not on the Selling Price of the house. As the capital gain is 27 lakhs with indexation you will need to pay 10% of 27 lakh 2.7 lakh. You can pay LTCG of 2.7 lakh or to save it So you invest 27 lakh in buying another house or in Capital Gains Account Scheme
Quoting from our article On Selling a house You can claim tax exemption under Section 54 on the long-term capital gain on the sale of a house. To avail of this exemption, you must
Use the entire profit to either buy another house within two years or
Construct one in three years.
If you had already bought a second house within a year before selling the first one, you could still avail of the tax exemption,

It’s possible that you are not able to make the required investment to avail of the exemption on capital gains before the due date for filing your tax return. In such a situation, the amount of capital gain or net consideration , as the case may be, has to be deposited in a separate account in a nationalised bank under the Capital Gains Account Scheme (CGAS)

70. Nitin Shukla says:

In our ISST office our office Office -in-charge (Dr. Rajib Nandi) received one consultancy project (personnel level) from UNESCAP (bangkok) amount of Rs. 15 lakhs and he want to give this project to ISST, so that any tax implication in his tax return. And also confirm he pay the any tax amount to income tax.

• Kirti says:

If he gets any money from the project then it can be counted as his income.(Salary or business depends on the terms and conditions of project it’s value w.r.t to his salary).
If he is not making any money from project then he will not have to pay income tax.

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72. Krishnan says:

I have shares of my employer company (ESOP) traded in London Stock exchange. These were purchased in Oct 2003. If I sell it now and get the money paid into my account in India what are my tax liabilities? I would appreciate your guidance.

• Kirti says:

Hello Krishnan
Taxation of ESOPs of company listed abroad:
This depends on whether you are a resident or non-resident Indian. If you are a non-resident, it will not be taxable, as the gains occur outside India, unless the money is received in India.

If you are a resident in India, then you will be taxed on the gains.
Long-term capital gain : either you can pay 10% income tax on gains without indexation benefit Or you can pay 20% income tax on gains with indexation benefit.
You can check our article What are Employee Stock Options for more details
And JagoInvestor’s RSU, ESPP and ESOP – Understanding Meaning and Taxation for more details.
Please do let us know if you find some other information.

• Vani Nath says:

Hi,
There is a lot of confusion about taxation on shares listed in stock exchanges outside India. One section of auditors link the Rules of Capital Gain tax on shares listed in Indian stock exchanges with Double Tax treaty and say that only 20%+surcharge is applicable for the shares traded in stock exchanges outside India. Another school of auditors say that the gain is treated as Other income and taxed at the person’s income tax clip level. I have not come across any income tax section that clearly states about tax implications on shares traded in outside stock exchanges. Lot of ambiguity

73. jitendra says:

hello sir,
i have some share of Satyam Computer which i bought sometime between 2009-2011 on avg price of 85rs, now after merger with Tech Mahindra i have got share of Tech Mahindra (on swap ratio of 17:2) (current price around 2200).
now if i sell my share, then what will be the tax liability on me on account of long term capital gain (more then 3 year)

74. Shiva says:

Sir.

My present taxable income is Rs. 4 lakhs till AY 2013.. I have sold a residential flat to day for Rs. 1 crore. The purchase cost of the flat is Rs. 5 lakhs in 1988-89. The present indexed cost is 25 lakhs. . I make a capital gain of Rs. 75 lakhs.

Can I opt for not using indexed cost and pay capital gain tax for 95 lakhs (1 crore minus 5 lakhs). If so what is the rate of Tax? If I use indexed cost and pay capital gain tax for Rs 75 lakhs what is the rate of tax?

• Kirti says:

Hello Shiva,
I recommend you read our article On Selling a house to find what are the tax implications and then we can discuss about the various alternatives.

75. Shiva says:

Sir.

My present taxable income is Rs. 4 lakhs till AY 2013.. I have sold a residential flat to day for Rs. 1 crore. The purchase cost of the flat is Rs. 5 lakhs in 1988-89. The present indexed cost is 25 lakhs. . I make a capital gain of Rs. 75 lakhs.

Can I opt for not using indexed cost and pay capital gain tax for 95 lakhs (1 crore minus 5 lakhs). If so what is the rate of Tax? If I use indexed cost and pay capital gain tax for Rs 75 lakhs what is the rate of tax?

76. sharat says:

Very helpful article. Detailed explanation is praiseworthy.
If one has salary income, Stock market derivative income and capital gains from debt and equity mutual funds, how the tax would be calculated and what ITR form will need to be filled up.
Stock market derivative income, I believe is business income and if this income is more than Capital gains income from stock and debt MFs, then will the entire income be treated as business income or the calculations have to be different for above.

77. P.K.Ravindran says:

This calculator is very helpful to understand the basic tax burden applicable on a real estate transaction .

• Kirti says:

78. financeMind says:

thanks…it’s nice calculator…

latestaccounting.com

79. Durga says:

My income comes to 4.5lacs and shares with short term gains of 20,000.Though my income comes below 5 lacs should i calculate 15 % tax on short term gain and 10% tax on remaining amount
or i should pay 10% tax for 4.7 lacs.please clarify.

• Kirti says:

Durga answer is based on the assumption that You have short term capital gain of Rs 20,000 from shares for which you have paid STT.
Short term capital gain on shares comes into play if you hold it for less than an year, These have to taxed at the rate of 15%.

80. […] Capital Gain Calculator […]

81. Lakshmipathy G says:

Thanks. It helped.

Thanks for leaving a comment – it’s a big encouragement to us!

82. […] Capital Gain Calculator […]

83. gsk says:

Hi,
Good effort. Thanks
Last 2 Lines “Long Term Capital Gain without indexation:4027.2” should have been “Long Term Capital Gain Tax without indexation:4027.2” word Tax needs to be added. For the the last lane since the difference is negative, 20% of of -1359. would not be tax as there is nothing to tax if CG is negative……..