Capital Gains Tax on Property Sale in Telangana & India (2025-26)
Capital gains tax is levied on the profit earned from selling property (land, apartment, commercial building) in Telangana or anywhere in India. The tax rate and calculation depend on the holding period. This guide covers the latest rules including Budget 2024 changes effective from 23 July 2024.
Long-Term vs Short-Term Capital Gains on Property in Telangana
Property held for more than 24 months (2 years) is a long-term capital asset. If sold within 24 months, it is short-term.
- LTCG: Held > 24 months — 12.5% (new) or 20% with indexation (old)
- STCG: Held ≤ 24 months — taxed at income tax slab rate
Budget 2024 Changes — New vs Old Regime
- New Regime (23 July 2024 onwards): LTCG at 12.5% flat WITHOUT indexation
- Old Regime: LTCG at 20% WITH CII indexation
- Properties bought before 23 July 2024 can choose the better option
- Properties bought on/after 23 July 2024 — only 12.5% applies
Cost Inflation Index (CII) Table — 2001-02 to 2025-26
| Financial Year | CII | Financial Year | CII |
|---|---|---|---|
| 2001-02 | 100 | 2014-15 | 240 |
| 2002-03 | 105 | 2015-16 | 254 |
| 2003-04 | 109 | 2016-17 | 264 |
| 2004-05 | 113 | 2017-18 | 272 |
| 2005-06 | 117 | 2018-19 | 280 |
| 2006-07 | 122 | 2019-20 | 289 |
| 2007-08 | 129 | 2020-21 | 301 |
| 2008-09 | 137 | 2021-22 | 317 |
| 2009-10 | 148 | 2022-23 | 331 |
| 2010-11 | 167 | 2023-24 | 348 |
| 2011-12 | 184 | 2024-25 | 363 |
| 2012-13 | 200 | 2025-26 | 377 |
| 2013-14 | 220 |
Step-by-Step Calculation
- Determine holding period — More than 24 months = LTCG
- LTCG with indexation (20%): Indexed Cost = Purchase Price x (CII sale year / CII purchase year). Tax = 20% x (Sale Price - Indexed Cost - Expenses) + 4% cess
- LTCG without indexation (12.5%): Tax = 12.5% x (Sale Price - Actual Cost - Expenses) + 4% cess
- Compare both — Choose lower tax option
Exemptions Under Section 54, 54EC, 54F
- Section 54: Buy new residential property within 2 years or construct within 3 years. Max Rs.10 crores.
- Section 54EC: Invest up to Rs.50 lakhs in NHAI/REC bonds within 6 months. Lock-in: 5 years.
- Section 54F: Full exemption if entire sale proceeds invested in new residential property.
TDS on Property Sale (Section 194-IA)
Buyer deducts 1% TDS on purchases above Rs.50 lakhs. For NRI sellers, TDS is 20% (LTCG) or 30% (STCG) under Section 195.
Capital Gains on Inherited Property
No tax on inheritance. When selling: cost = original owner's cost, holding period includes previous owner's period. If bought before 2001, use Fair Market Value as on 1 April 2001.
Disclaimer
This calculator provides estimates for educational purposes. Consult a Chartered Accountant for your specific situation. Visit incometax.gov.in for official filing.
