Budget 2024 Updates

Real Estate Capital Gains Tax

Calculate the exact tax liability on your property sale using the new flat 12.5% rate (without indexation benefits) introduced in the Union Budget 2024.

Transaction Details

Total cost incurred while buying.

Renovations, extensions, etc.

Tax Liability (Post-2024)

Total Tax Due (12.5%)

₹8,12,500

Gross Capital Gains₹65,00,000
Tax Deducted-₹8,12,500
In-Hand Cash (Post-Tax)₹1,41,87,500

The Death of Indexation

  • The Old Rule: Previously, you were allowed to adjust your property's purchase price to match inflation using the Cost Inflation Index (CII). You then paid a 20% tax on the inflation-adjusted profit. This often reduced the actual tax burden to single digits.
  • The Budget 2024 Change: The government completely removed the indexation benefit for properties bought after July 23, 2024. In return, the tax rate was slashed from 20% to a flat 12.5%.
  • How it affects you: If your property appreciated slowly over many years, you will likely pay significantly higher taxes under the new 12.5% flat rate compared to the old indexed system. If your property doubled in value rapidly (in 3-4 years), the 12.5% rate is highly beneficial to you.
  • Exemptions (Section 54): You can completely avoid paying this 12.5% tax if you reinvest the entire capital gains amount into buying a new residential property in India within 2 years, or constructing one within 3 years.