Capital gains calculation on sale of property

Income Tax Act 1961
1

Hi,

I bought a villa in June 2023 and sold it in March 2026. Can someone plesae help me calculate the long term capital gains (long term because >2yrs old) ? Capital gains = Sale price - Cost of acquisition, right? Let me know apart from purchase price (Land cost & Construction cost) mentioned in the registration doc, which of the below also need to be added in the cost of acquisition . Below charges were present in the cost sheet provided to me by the villa builder who sold me the villa.

  1. Stamp Duty

  2. Registration charges

  3. Documentation & misc expenses

  4. GST 5%

For sale price, I believeI need to account only the price mentioned in the registration doc and no other charges as all those charges were borne by the buyer who purchased from me. Thanks in advance for your support.

2

Hey @Manigandan,

You’re on the right track.

For cost of acquisition, you can include all expenses that were directly related to buying the property. So along with land and construction cost, you can add:

  • Stamp duty
  • Registration charges
  • Documentation and other incidental expenses
  • GST paid on purchase

All of these form part of your total acquisition cost.

For the sale price, you generally consider the value mentioned in the sale deed (since other charges are borne by the buyer).

So yes, your understanding is correct. Just make sure you include all these costs while calculating your capital gains!

3

Thank you very much @Diti_Savalia for your response.

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