What will be capital gain amount for depositing money in Capital Gains Scheme account?

1. Capital Gain Calculation

Purchase price (22 Mar 2012): ₹22,00,000
Sale price (17 Jan 2026): ₹52,70,000

Using Cost Inflation Index (CII):
FY 2011-12: 184
FY 2025-26: 363

Indexed Cost ≈ ₹43,41,000

Long-Term Capital Gain (LTCG)
= 52,70,000 − 43,41,000 ≈ ₹9,29,000

So, capital gain is about ₹9.3 lakh (before adjusting brokerage or other expenses).

1. Amount to Deposit in CGAS

If you do not purchase another house before filing the return, deposit around ₹9.3 lakh in the Capital Gains Accounts Scheme 1988 to claim exemption under Section 54 of Income Tax Act.

1. Tax Rate (After Budget 2024)

For property purchased before 23 July 2024, you can choose:

• 20% tax with indexation, or

• 12.5% tax without indexation

Whichever results in lower tax can be applied. Indexation is available in your case.

For detailed personal guidance, I recommend booking a phone consultation. After reviewing your financial structure and current tax position, I will be able to suggest the most effective and legally compliant ways to optimize your tax liability.

- Assuming your residential status is resident

- Assuming cost of Rs.22 lacs includes cost of stamp duty, registration fees, brokerage fees, interest on housing loan for which benefit u/s 24(b) is not claimed (if any) 

-  Is there any expense incurred exclusively for sale of the flat?

-  Have you incurred any capital expenditure on house?

1. You can opt lower of the below options

Option 1

Calculation of LTCG without benefit of indexation

LTCG = 30.7 lacs

Basic tax rate=12.5%

Option 2

Calculation of LTCG with benefit of indexation

LTCG = 7.74 lacs

Basic tax rate = 20%

2. Section 112 and section 54 would be applicable

3. Yes

4. Open CGAS before the due date of filing of ITR and deposit LTCG amount to avail the benefit of exemption

For detailed discussion you may opt for phone consultation

Dear Sir,

Please find below the responses point wise:

1. To claim exemption under Section 54, the capital gain amount (≈ ₹7.75 lakh) should be deposited in the Capital Gains Account Scheme.

Note: Only the capital gain portion is deposited, not the full sale proceeds.

Please find below the Calculation of capital gain amount:

Sale Price:
₹52,70,000

Purchase Price:
₹22,00,000

Indexed Cost of Acquisition:
₹22,00,000 × (376 / 184)

= ₹44,95,652 (approx.)

(CII used: 376 for sale year and 184 for purchase year)

Long-Term Capital Gain (LTCG) = Sale Price – Indexed Cost i.e. ₹52,70,000 – ₹44,95,652= ₹7,74,348 (approx.)

2. Relevant Income Tax Rules

1. Section 45 of Income Tax Act → Capital gain arises on transfer of property.

2. Section 48 of Income Tax Act → Method to compute LTCG (including indexation).

3. Section 54 of Income Tax Act → Exemption if gain is reinvested in residential property.

4. Capital Gains Account Scheme 1988 → Allows depositing LTCG if new property purchase is not immediate.

3.Yes, indexation is allowed because:

• Property held > 2 years → LTCG

• Purchased before 23 July 2024

Thanks & Regards,

Payal Chhajed