Capital Gains Computation on Sale of Property
Work out the capital gain on selling a house, plot or other immovable property, with the stamp duty value rule and reinvestment exemptions.
Law version: Up to FY 2025-26 (Income-tax Act, 1961); Tax Year 2026-27 onwards (Income-tax Act, 2025). Checked on 26 Sep 2026.
What it is
When immovable property is sold, the gain is the full value of consideration less the cost of acquisition, cost of improvement and transfer expenses. Where the stamp duty value is higher than the price, the stamp duty value is taken as the sale value (Section 50C, with a 10% tolerance). Property held for more than 24 months gives a long-term gain. For sales up to 31 March 2026 the sections are 45, 48, 50C and 54 / 54EC / 54F of the Income-tax Act, 1961; from 1 April 2026 they are Sections 67 and 82 / 85 / 86 of the Income-tax Act, 2025.
When it is used
- Selling a house, flat, plot or commercial property.
- Deciding whether to reinvest in a new house or capital gains bonds.
- Preparing the capital gains schedule for the return.
What the template covers
- Assessee name and PAN
- Property sold, type and dates of purchase and sale
- Cost of acquisition and improvement
- Sale consideration, stamp duty value and transfer expenses
- Indexed cost (where the indexation option applies)
- Exemption claimed and net gain
Details you will need
The generator asks for the following. Fields marked with an asterisk in the form are required; the rest can be left blank and filled in later in Word.
Statement
Statement Date
Assessee
Assessee Name; PAN
Property
Property Address (Sold); Property Type
Acquisition
Date of Purchase; Cost of Acquisition (₹); Cost of Improvement (₹); Transfer/Brokerage Expenses (₹)
Sale
Date of Sale; Full Sale Consideration (₹); Stamp Duty Value (₹, Sec 50C)
Indexation
Indexed Cost of Acquisition (₹); Indexed Cost of Improvement (₹)
Exemptions
Reinvestment Exemption Claimed; Exemption Amount Claimed (₹)
Stamp duty, registration and filing
For transfers on or after 23 July 2024, long-term gains are taxed at 12.5% without indexation; a resident individual or HUF selling land or a building acquired before that date may instead pay 20% with indexation. Exemptions are available for reinvestment in a residential house (up to ₹10 crore) or in specified bonds within six months (up to ₹50 lakh), subject to conditions and time limits. Unutilised amounts can be kept in the Capital Gains Account Scheme until the return due date. The buyer deducts TDS on the price.
Section numbers follow the date of sale. For transfers on or after 23 July 2024, long-term gains are taxed at 12.5% without indexation; a resident individual or HUF selling land or a building bought before that date may instead pay 20% with indexation.
Generate the Capital Gains Computation — Property Sale
Fill in the form and download the draft as a Word file. It is a general template, not legal or professional advice; have it reviewed for your facts before you sign or rely on it.
Need this checked against your facts, or the registration or filing that follows (e.g. TDS returns, ITR)? Contact SKAG and Associates
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Frequently asked questions
Is indexation still available on property?
Only for resident individuals and HUFs selling land or buildings acquired before 23 July 2024, who may choose 20% with indexation instead of 12.5% without it.
What if the sale price is below the circle rate?
The stamp duty value is taken as the sale price if it exceeds the actual price by more than 10%.
How long do I have to reinvest for the house exemption?
Buy within one year before or two years after the sale, or construct within three years. Deposit unused gains in the Capital Gains Account Scheme before the return due date.
This page gives general information for reference only. Laws, stamp duty rates and filing requirements change and differ between States, so confirm the current position for your case. Related: all document templates · free tax calculators · compliance calendar and guides.