Ltcg on property

Income Tax Act 2025
1

Bought flat in August 2002 @3 lakhs. Selling now in 1.5 cr. What will be net LTCG. I m 63 years now.

3

Hey @KAILASH_SATTI,

You have two options here to calculate the LTCG:

  • If you go with indexation, your indexed cost will be ₹10,74,285. And your taxable LTCG will be ₹1,39,25,715, taxed at 20%.

  • Without indexation, your LTCG will be ₹1.47 crore, taxed at 12.5%.

You can check both calculations and opt for whichever results in lower tax.

4

So I did the math,

  • With indexation:
    LTCG ≈ ₹1.39 crore → Tax @20% ≈ ₹27.8 lakh

  • Without indexation:
    LTCG ≈ ₹1.47 crore → Tax @12.5% ≈ ₹18.3 lakh

So, the 12.5% option without indexation is more beneficial in your case.

1 Like
5

I bought a land for 5L in 2005 in my name and built a house for 25L in 2006. Now I want to sell that house for 3Cr. To reduce the LTCG, I want to invest in 54EC bond. Can I add my spouse and son to this property by way of a gift deed now. And sell this property within two to three months. Do they eligible for LTCG claim even though added now. Is there any other way to reduce tax.

Thanks in advance.

7

be careful ltcg tax is easy to calculate but surcharge @15% will be applicable as your taxable income will exceed 1 crore