{"id":7909,"date":"2025-07-16T07:43:04","date_gmt":"2025-07-16T07:43:04","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7909"},"modified":"2025-07-16T07:43:07","modified_gmt":"2025-07-16T07:43:07","slug":"long-term-capital-gain-ltcg-tax-on-property","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/long-term-capital-gain-ltcg-tax-on-property\/","title":{"rendered":"Long Term Capital Gain (LTCG) Tax on Property"},"content":{"rendered":"<p><strong>Long Term <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/capital-gain\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Capital Gain<\/a> (LTCG)<\/strong> on property means the <strong>profit earned from selling a real estate asset<\/strong> like land, house, or flat after <strong>holding it for more than 2 years<\/strong>.<\/p>\n\n\n\n<p>This gain is <strong><a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/tax\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>tax<\/a>able<\/strong> under Indian <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/income-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">income tax<\/a> laws.<\/p>\n\n\n\n<h2 id=\"when-is-it-called-long-term\" class=\"wp-block-heading\">When is It Called &#x201C;Long Term&#x201D;?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you <strong>sell property after 24 months (2 years)<\/strong> of owning it = <strong>LTCG<\/strong><\/li>\n\n\n\n<li>If sold <strong>within 2 years<\/strong>, it&#x2019;s a <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/short-term-capital-gain-stcg\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Short Term Capital Gain (STCG)<\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<h2 id=\"how-to-calculate-ltcg-on-property\" class=\"wp-block-heading\">How to Calculate LTCG on Property<\/h2>\n\n\n\n<p><strong>LTCG = Sale Price &ndash; <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/index\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>Index<\/a>ed Purchase Price &ndash; <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/expense\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Expenses<\/a><\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Component<\/th><th>Example (&#x20B9;)<\/th><\/tr><\/thead><tbody><tr><td>Sale Price<\/td><td>&#x20B9;80,00,000<\/td><\/tr><tr><td>Purchase Price<\/td><td>&#x20B9;40,00,000 (in 2010)<\/td><\/tr><tr><td><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/indexation\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Indexation<\/a> Benefit<\/td><td>&#x20B9;40,00,000 &#xD7; (CII of sale year &#xF7; CII of buy year)<\/td><\/tr><tr><td>Indexed Cost<\/td><td>&#x20B9;40,00,000 &#xD7; (348 &#xF7; 167) &#x2248; &#x20B9;83,35,329<\/td><\/tr><tr><td>LTCG<\/td><td>&#x20B9;80,00,000 &#x2013; &#x20B9;83,35,329 = NIL or loss<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">How to Calculate LTCG on Property<\/figcaption><\/figure>\n\n\n\n<p>&#x2705; <em>CII = <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/cost-inflation-index\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Cost Inflation Index<\/a> (updated every year)<\/em><\/p>\n\n\n\n<h2 id=\"tax-rate-on-ltcg-from-property\" class=\"wp-block-heading\">Tax Rate on LTCG from Property<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>20% flat tax<\/strong> after indexation<\/li>\n\n\n\n<li><strong>Surcharge + Cess<\/strong> applicable based on total income<\/li>\n\n\n\n<li><strong>No slab-based rate<\/strong><\/li>\n<\/ul>\n\n\n\n<h2 id=\"exemptions-you-can-claim-to-save-tax\" class=\"wp-block-heading\">Exemptions You Can Claim (To Save Tax)<\/h2>\n\n\n\n<h3 id=\"1-section-54-if-you-sell-a-house-and-buy-another-residential-house\" class=\"wp-block-heading\">1. <strong>Section 54<\/strong> &#x2013; If you sell a house and <strong>buy another residential house<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Purchase within 1 year before or 2 years after sale<\/li>\n\n\n\n<li>Construct within 3 years<\/li>\n\n\n\n<li>Exempt LTCG up to the cost of new house<\/li>\n\n\n\n<li>Max: <strong>1 house in India<\/strong> only<\/li>\n<\/ul>\n\n\n\n<h3 id=\"2-section-54ec-invest-in-nhai-or-rec-bonds\" class=\"wp-block-heading\">2. <strong>Section 54EC<\/strong> &#x2013; Invest in <strong>NHAI or REC <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bonds\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>bonds<\/a><\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Within 6 months of sale<\/li>\n\n\n\n<li>Lock-in period: <strong>5 years<\/strong><\/li>\n\n\n\n<li>Max investment: <strong>&#x20B9;50 lakh<\/strong><\/li>\n<\/ul>\n\n\n\n<h3 id=\"3-section-54f-if-you-sell-any-asset-like-land-and-buy-a-residential-house\" class=\"wp-block-heading\">3. <strong>Section 54F<\/strong> &#x2013; If you sell <strong>any asset (like land)<\/strong> and buy a <strong>residential house<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Must not own more than 1 house at time of sale<\/li>\n\n\n\n<li>Must invest <strong>entire sale amount<\/strong> (not just profit)<\/li>\n<\/ul>\n\n\n\n<h2 id=\"when-how-to-pay-ltcg-tax\" class=\"wp-block-heading\">When &amp; How to Pay LTCG Tax<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pay tax <strong>before 31st July<\/strong> (same financial year) while filing ITR<\/li>\n\n\n\n<li>Declare under <strong>&#x201C;Capital Gains&#x201D;<\/strong> in ITR-2 or ITR-3<\/li>\n\n\n\n<li>Pay <strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/advance-tax\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">advance tax<\/a><\/strong> if gains are large, or interest may apply<\/li>\n<\/ul>\n\n\n\n<h2 id=\"important-rules-to-remember\" class=\"wp-block-heading\">Important Rules to Remember<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Rule<\/th><th>What It Means<\/th><\/tr><\/thead><tbody><tr><td>Holding period<\/td><td>&gt; 24 months for LTCG<\/td><\/tr><tr><td>Indexation benefit allowed<\/td><td>Yes, to adjust for <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/inflation\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">inflation<\/a><\/td><\/tr><tr><td>Set-off of capital loss<\/td><td>Only against other LTCG (not salary income)<\/td><\/tr><tr><td>Gifted property<\/td><td>Cost to previous owner is considered<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"summary-table\" class=\"wp-block-heading\">Summary Table<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>LTCG on Property<\/th><\/tr><\/thead><tbody><tr><td>Holding Period<\/td><td>More than 24 months<\/td><\/tr><tr><td>Tax Rate<\/td><td>20% (after indexation)<\/td><\/tr><tr><td>Indexation Benefit<\/td><td>Yes<\/td><\/tr><tr><td>Exemptions<\/td><td>Sec 54, 54F, 54EC<\/td><\/tr><tr><td>ITR Form<\/td><td>ITR-2 or ITR-3<\/td><\/tr><tr><td>Advance Tax Required?<\/td><td>Yes, if large gain<\/td><\/tr><\/tbody><\/table><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Long Term Capital Gain (LTCG) on property means the profit earned from selling a real estate asset like land, house, or flat after holding it for more than 2 years. This gain is taxable under Indian income tax laws. When is It Called &#x201C;Long Term&#x201D;? How to Calculate LTCG on Property LTCG = Sale Price [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7909","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7909\/revisions"}],"predecessor-version":[{"id":7910,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7909\/revisions\/7910"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}