How the calculator works
- Long-term means held for more than 24 months. Long-term gains are taxed at 12.5% without indexation. Resident individuals who bought before 23 July 2024 can instead pay 20% with indexation if that’s lower — the calculator compares both. NRIs don’t get that option.
- Short-term gains are added to your income and taxed at slab rates; for NRI sellers, buyers typically deduct TDS at 30%.
- Exemptions: reinvesting in a new residential house (capped at ₹10 crore) or up to ₹50 lakh in capital-gain bonds within six months.
- Surcharge (10% above ₹50 lakh, 15% above ₹1 crore — capped at 15% on long-term gains) and 4% health and education cess are added.
Detailed guides: TDS on property sale by an NRI · NRI tax services.
Frequently asked questions
How is capital gains tax on property calculated in India?
Capital gain is the sale price minus the purchase cost, improvement costs and selling expenses. If the property was held more than 24 months, the gain is long-term and taxed at 12.5% without indexation (residents who bought before 23 July 2024 can choose 20% with indexation if lower), plus surcharge and 4% cess.
What is the TDS on property sold by an NRI?
On long-term gains, 12.5% plus surcharge and cess (up to about 14.95%); on short-term gains, typically 30% plus surcharge and cess. Without a lower-TDS certificate, buyers often deduct on the full sale price.
Can I avoid capital gains tax on selling a house?
You can reduce or eliminate long-term capital gains by reinvesting in a new residential house within the time limits (exemption capped at ₹10 crore) or investing up to ₹50 lakh in specified capital-gain bonds within six months.