LTCG Tax on Property Calculator FY 2026-27

Q: What is LTCG on property?

Long Term Capital Gains is the profit from selling property held for more than 24 months.

Q: What is the LTCG tax rate on property?

20 percent with indexation benefit plus 4 percent Health and Education Cess totaling approximately 20.8 percent.

Q: What is indexation in property?

Indexation adjusts the purchase price for inflation using the Cost Inflation Index reducing taxable gains.

Q: How to save LTCG tax on property?

Invest in another residential property under Section 54 Capital Gains Bonds under Section 54EC or use Section 54F for non-residential property.

Q: What is Section 54 exemption?

Section 54 allows exemption on LTCG if you buy or construct a residential property within the specified time frame.

Q: Can I claim both Section 54 and 54EC?

Yes you can claim both exemptions on different portions of your capital gains.

Q: What is the holding period for LTCG on property?

Property must be held for more than 24 months to qualify as Long Term Capital Asset.

Q: Is LTCG tax applicable on ancestral property?

Yes LTCG tax applies on sale of ancestral property. The holding period is calculated from the date the previous owner acquired it.

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Property Sale Details

Sale PriceFinal sale value of property

Purchase PriceOriginal purchase cost

Purchase YearYear when property was bought

Sale YearYear when property was sold

Improvement CostRenovation/construction costs

Selling ExpensesBrokerage, legal fees etc.

Exemptions (Optional)

Section 54 InvestmentBuy another residential property

Section 54EC InvestmentCapital Gains Bonds (max ₹50L)

Section 54F InvestmentFor non-residential property

🏠 LTCG Tax on Property Calculator India (FY 2026-27)

Calculate Long Term Capital Gains (LTCG) Tax on Property Sale with indexation benefit and exemptions under Section 54, 54EC, and 54F. This calculator is updated for FY 2026-27 with the latest Cost Inflation Index (CII) values.

💡 What is LTCG on Property?

Long Term Capital Gains (LTCG) is the profit you make when selling a property held for more than 24 months. It's taxed at 20% with indexation benefit (plus 4% cess).

🧮 How LTCG Tax is Calculated

✔ Indexed Cost of Acquisition = Purchase Price × (CII of Sale Year / CII of Purchase Year)
✔ LTCG = Sale Price − Indexed Cost − Improvement Cost − Selling Expenses
✔ Tax = (LTCG − Exemptions) × 20% × 1.04 (with cess)

📊 Cost Inflation Index (CII) FY 2026-27

The CII for FY 2026-27 is 399 (assumed based on historical trends). The government releases official CII every year for indexation calculations.

📌 Exemptions Under Income Tax Act

Section 54

If you buy/construct another residential property within specified time, you can claim exemption on LTCG invested.

Section 54EC

Invest in Capital Gains Bonds (NHAI/REC) within 6 months. Maximum exemption: ₹50 lakh.

Section 54F

For sale of non-residential property (land, commercial), invest in residential property to claim exemption.

📈 LTCG Tax Rate (FY 2026-27)

✔ Property held > 24 months: 20% with indexation + 4% cess
✔ Property held < 24 months: Taxed as Short Term Capital Gains at slab rate

❓ FAQ - LTCG Property Tax Calculator

1. What is LTCG on property?

Long Term Capital Gains is the profit from selling property held for more than 24 months.

2. What is the LTCG tax rate on property?

20% with indexation benefit, plus 4% Health & Education Cess (total ~20.8%).

3. What is indexation in property?

Indexation adjusts the purchase price for inflation using the Cost Inflation Index, reducing taxable gains.

4. How to save LTCG tax on property?

Invest in another residential property (Sec 54), Capital Gains Bonds (Sec 54EC), or use Section 54F for non-residential property.

5. What is Section 54 exemption?

Section 54 allows exemption on LTCG if you buy/construct a residential property within the specified time frame.

6. Can I claim both Section 54 and 54EC?

Yes, you can claim both exemptions on different portions of your capital gains.

7. What is the holding period for LTCG on property?