Property Sale Tax & Capital Gain Filing Services in India
Expert assistance for capital gain calculation, tax planning, exemption claims under Sections 54/54EC/54F, and complete property sale compliance — for residential sellers, NRIs, investors, and businesses across India.
The Basics
What is Capital Gain?
When you sell a property for more than its cost (adjusted for improvements), the profit is called a capital gain — and it's taxable under the Income Tax Act. How it's taxed depends entirely on how long you held the property.
Holding period rule: property held for 24 months or more from the date of acquisition is a long-term capital asset. Less than 24 months is short-term.
Short-Term vs Long-Term Capital Gain
| STCG | LTCG | |
|---|---|---|
| Holding period | Less than 24 months | 24 months or more |
| Tax rate | Your income slab rate | 12.5% (or 20% with indexation, if eligible) |
| Exemptions (54/54F/54EC) | Not available | Available |
| Indexation benefit | Not applicable | Only for assets bought before 23 Jul 2024 |
WHAT CHANGED
New Property Sale Tax Rules You Must Know in 2026
Capital gains taxation on property changed significantly after 23rd July 2024, and these rules are still the ones governing your AY 2026-27 filing. Most sellers — and many local agents — haven't fully caught up. Here's exactly what applies now.
Flat 12.5% LTCG, no indexation — by default
For properties acquired on or after 23rd July 2024, long-term capital gains are taxed at a flat 12.5% without any indexation benefit.
Grandfathering for older properties
If you bought before 23rd July 2024, you can choose whichever is lower: 12.5% without indexation, or 20% with indexation. We calculate both and pick the cheaper one for you.
Holding period simplified to 24 months
The long-term threshold for property is now uniformly 24 months from acquisition — no separate rules for different asset sub-types.
₹10 crore cap on Section 54 / 54F
The maximum exemption under Sections 54 and 54F is capped at ₹10 crore per transaction — gains above this are taxable even if fully reinvested.
Capital gains don't get the Section 87A rebate
Even if your total income is below ₹12 lakh, capital gains from property sale are not covered by the Section 87A rebate — a commonly missed detail.
NRI lower-TDS certificate now Form 128
Under the Income Tax Rules, 2026, NRI sellers apply for a Lower/Nil TDS Certificate using the new Form 128, replacing the earlier Form 13.
Tax Treatment by Type of Property
Not all property sales are taxed the same way. Here's how the rules differ across common situations.
| Property Type | Key Consideration | Relevant Section |
|---|---|---|
| Residential House | Standard LTCG/STCG rules; full Section 54 eligibility | 54, 54EC |
| Commercial Property | No Section 54 (residential only); reinvest via 54F or 54EC | 54F, 54EC |
| Plot / Land Sale | Cost of acquisition + improvement only; no depreciation | 54F, 54EC |
| Agricultural Land | Rural agricultural land is fully exempt; urban land is taxable | 54B (reinvestment in agri land) |
| Inherited Property | Cost = original owner's cost; holding period includes their ownership period | 54, 54EC, 54F |
| Gifted Property | Same cost & holding period carryover as inherited property | 54, 54EC, 54F |
| NRI-owned Property | TDS at higher rates by the buyer; Form 128 reduces upfront deduction | 195, Form 128 |
| Joint Ownership Property | Gain split by ownership share; each co-owner files and claims exemption separately | 54, 54EC, 54F (per co-owner) |
| Builder / Under-Construction | Holding period counted from allotment letter in many cases, not just registration | 54, 54EC, 54F |
What Every Property Sale Must Comply With
| Area | Details |
|---|---|
| Capital Gains Tax | Payable on the profit earned from sale of property |
| TDS Deduction (Sec 194-IA) | 1% of sale value, deducted by the buyer if sale value exceeds ₹50 lakh |
| Buyer's PAN | Required to deduct & deposit TDS correctly |
| Form 26QB Filing | Mandatory for the buyer within 30 days of the transaction |
| Form 16B | TDS certificate issued to the seller for claiming credit |
| ITR Reporting | Seller must declare capital gains in Schedule Capital Gains of ITR-2/ITR-3 |
| Tax Exemptions | Available under Sections 54, 54EC, 54F, 54B with timely reinvestment |
Section 54, 54F & 54EC — How to Legally Save Tax
Reinvestment is the most powerful — and most missed — legal tax-saving tool for property sellers.
| Section | Exemption Type | Conditions |
|---|---|---|
| 54 | Purchase or construct another residential house | LTCG from a residential property only; cap ₹10 crore |
| 54F | Reinvest full net sale proceeds in one residential house | For LTCG on any asset other than a house; you must not already own more than one house |
| 54EC | Invest in NHAI/REC/PFC/IRFC bonds, up to ₹50 lakh | Within 6 months of sale; 5-year lock-in |
| 54B | Reinvest in agricultural land | Applies to sale of agricultural land used for farming |
| Capital Gain Account Scheme (CGAS) | Park unutilised gains in a designated bank account | Use when reinvestment isn't completed before the ITR due date — preserves the exemption |
Worked Example — Tax-Saving Impact of Section 54
A property bought in FY 2015-16 for ₹50 lakh (before 23 July 2024) is sold in FY 2025-26 for ₹90 lakh. As the property was acquired before the cut-off, both computation methods are compared:
NRI Property Sale — What's Different
- Buyer deducts TDS on the full sale value, not just the gain — typically 12.5–20% (LTCG) or up to 30% (STCG)
- A Lower/Nil TDS Certificate (Form 128) can reduce this to tax on the actual gain only
- Form 15CA/15CB certification is required to repatriate sale proceeds abroad
- DTAA benefits may apply depending on the seller's country of residence
Why NRI Clients Trust SSA TAX
- We file the Form 128 lower-TDS application before your sale closes — not after
- Capital gain computed precisely, so refund claims are accurate and fast
- Coordination with buyers, banks, and CAs handled on your behalf
- 100% remote — sign, pay, and track refunds from anywhere in the world
How It Works
Your Property Sale Tax Filing, Step by Step
Share Documents
Sale deed, purchase deed & cost proofs
Tax Review
Holding period & eligible exemptions assessed
Gain Calculation
STCG/LTCG computed both ways where applicable
ITR Filing
Return filed with full Schedule Capital Gains
Tax Planning
Section 54/54EC/54F & CGAS strategy finalised
Post-Filing Support
Refund tracking & notice assistance, if any
SSA TAX vs. Traditional Tax Consultants
Property sale tax is high-value and high-risk to get wrong. Here's where the difference actually shows up.
| Parameter | Traditional Consultants | SSA TAX |
|---|---|---|
| Dedicated Expert | Shared across many clients | One CA owns your case end-to-end |
| Response Time | Days, often unclear | Same-day response on call/WhatsApp |
| NRI Support | Limited or outsourced | In-house NRI & DTAA specialists |
| Capital Gain Planning | Computed after the sale, reactively | Planned before you sign the sale deed |
| Document Assistance | You chase the paperwork yourself | Checklist + guided document collection |
| Post-Filing Support | Service ends at filing | Refund tracking & notice support included |
| Compliance Tracking | Manual, easy to miss deadlines | Deadlines tracked & proactively reminded |
| WhatsApp Support | Rarely available | Dedicated WhatsApp line, always on |
Documents Required for Personal ITR Filing
FAQ
Frequently Asked Questions
Everything property sellers ask us before filing.