Tax planning
Property sale computation, 12.5% or 20% with indexation for property bought before 23 July 2024, Sec 112
What this means, checked by a CA
If you are a resident and sell a property bought before 23 July 2024, the law lets you pay the lower of 12.5% on the plain gain or 20% on the gain after indexation. We compute both, pick the lower, and report it correctly in your return.
₹4,999
Per event, + 18% GST
- Delivered in 3 working days after sale deed, purchase deed and cost proofs
- Due: Before the sale for planning; advance tax in the quarter of sale; return by the due date
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 7 items
Sale deed and agreement to sell
Sale value and transfer date
Stamp duty value on sale
Sec 50C 10% test
Purchase deed and payment proofs
Cost and acquisition year
Improvement bills with yearsOptional
Cost of improvement, indexed if chosen
Previous owner's deed, if inheritedOptional
Cost and date carry over
Valuer report and 2001 circle rateOptional
Pre-2001 property cost
Residential status and ownership share
Option and split between owners
DiscussionWhat we discuss · 5 items
Are you a resident individual or HUF this year?
NRIs only get 12.5%
When was the property bought, by you or the previous owner?
Before 23 July 2024 and before 2001 tests
Is the sale price below the circle rate?
Sec 50C substitution
Who are the owners and in what share?
Each files own share
Do you plan to buy another house or 54EC bonds?
Exemption reduces gain
FormsForms we file · 7 items
Fix sale value: higher of agreed price and stamp duty value where the gap exceeds 10%
Where: Internal. Due: At sale
Fix cost: actual cost, or previous owner's cost, or 1 April 2001 value capped at circle rate
Where: Internal. Due: At sale
Compute gain A at 12.5% without indexation
Gain A = sale value minus transfer expenses minus cost minus improvement; tax A = 12.5% of gain A
Where: Internal. Due: At sale
Compute gain B at 20% with indexation
Indexed cost = cost x CII of year of sale / CII of year of purchase (2001-02 = 100 for pre-2001); tax B = 20% of gain B
Where: Internal. Due: At sale
Take the lower tax; then apply Sec 54, 54EC or 54F exemptions if claimed
Tax payable = lower of tax A and tax B, before surcharge and cess
Where: Internal. Due: Before advance tax
Pay advance tax for the quarter of sale
Where: https://www.incometax.gov.in. Due: Next advance tax date
Report each property separately in Schedule CG of ITR-2 or ITR-3
Where: https://www.incometax.gov.in. Due: By the return due date
DeliverablesWhat you get · 3 items
Side-by-side computation of both options
When: 3 working days
Advance tax challan working
When: With computation
Filed return with Schedule CG
When: At return time
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