₹21,300 left every month
TaxSavvy for property sale tax
Selling a house? Save the tax before you sign.
We compute the gain, plan Sec 82 (old 54) and 54EC, and file.
If you wait: Gain not reinvested or put in CGAS by the due date loses the exemption (Sec 82, old 54)
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
Sale deed and agreement to sell. Stamp duty value on agreement and registration
Discussion
When and how did you acquire the house (bought, inherited, gifted, under-construction booking)?. Are you resident or NRI, and was the house bought before 23 July 2024?
Forms
Compute full value of consideration. Compute long-term gain both ways for a resident with pre-23 July 2024 property
Deliverables
Capital gains computation with exemption note. CGAS deposit guidance and receipt check
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹36,280 less tax in the new regime
Sample Net worth ₹14.9 lakh
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
NRI Property Sale: TDS 20 to 30% by Buyer (Section 393, old 195)
- Facts
- When an NRI sells property in India, the buyer must deduct TDS at 20% (LTCG rate) or 30% (STCG rate) on the ENTIRE sale consideration, not just the gain. This is the most commonly mishandled NRI transaction. A ₹1Cr property sale → buyer must deduct ₹20L in TDS. NRI then claims refund after filing ITR.
- Provisions and law
- Sec 393 (old 195); Rule 220 (old Rule 37BB); Sec 248; Sec 200
- Analysis
- The TDS problem: Section 393, Income-tax Act 2025 (old Sec 195) requires TDS on the ENTIRE consideration (not just gain). ₹1Cr property → buyer must deduct 20% = ₹20L TDS from payment to NRI seller. NRI receives ₹80L. NRI then files ITR, computes actual LTCG (say ₹30L), tax on LTCG ₹3.75L (12.5%), claims refund of ₹20L − ₹3.75L = ₹16.25L. Refund takes 6-12 months. Lower TDS certificate, the solution: NRI seller applies to Assessing Officer (under Sec 393 (old Sec 195(2)) or Sec 248) for a certificate allowing lower TDS. Certificate specifies TDS only on the actual capital gains portion, not full consideration. This dramatically reduces upfront TDS. Process takes 30-60 days. NRI seller should apply well before property transaction. DTAA benefit: Many DTAA (India-USA, India-UK, India-UAE etc.) allow lower TDS rates or provide that capital gains from immovable property are taxed only in the country where property is situated (India).
- Conclusion
- Buyer: Confirm seller is NRI (check FEMA status, check NRO/NRE account, check PAN with non-resident status)
- Seller: Apply for lower TDS certificate from IT AO at least 45-60 days before transaction
- CA: Prepare Form 146 (old Form 15CB), computation of LTCG, applicable tax rate, DTAA benefit if any
- Buyer: Deduct TDS at 20% (LTCG) or 30% (STCG) on full consideration unless lower certificate obtained
Section 82 (old 54): Property Sale Reinvestment Exemption
- Facts
- Sell a residential property and reinvest in another residential property, the capital gains are fully or partly exempt. The most valuable capital gains exemption in India. Saves ₹5L to ₹30L in tax for property sellers. Timing and documentation are critical.
- Provisions and law
- Sec 82 (old 54(1)); Sec 82 (old 54(2)); Sec 82 (old 54(3)); Finance Act 2023; Sec 86 (old 54F)
- Analysis
- Three time windows to reinvest: (1) Buy new property 1 year BEFORE the old property sale, the earlier purchase already counts. (2) Buy new property within 2 years AFTER sale. (3) Construct a new property within 3 years after sale. ALL three qualify. CGAS, the safety net: If you have sold the property but haven't yet bought a new one before your ITR filing deadline (July 31 or October 31), deposit the LTCG amount in Capital Gains Account Scheme at any nationalised bank (SBI, PNB, Bank of Baroda etc.) in a designated CGAS account. You can then withdraw from CGAS to fund the new property purchase within the 2/3 year window. CGAS deposit must happen BEFORE filing ITR to claim the exemption in the sale year. Partial exemption: If only part of LTCG is reinvested: exemption = (new property cost / LTCG) × LTCG.
- Conclusion
- Confirm property is long-term (held 24+ months from purchase to sale)
- Compute LTCG: Sale price (or stamp duty value, whichever higher) minus indexed/actual cost
- Decide: reinvest in new residential property OR NHAI/REC bonds (Sec 85, Income-tax Act 2025, old Sec 54EC)
- If buying new property: timeline, purchase within 2 years or construction within 3 years from sale date
LTCG on Property, 12.5% (No Indexation) vs 20% (With CII): Choose Lower
- Facts
- Budget 2024 changed everything for property taxation. For property purchased before July 23, 2024: taxpayer chooses between 12.5% (no indexation) or 20% with Cost Inflation Index, whichever gives lower tax. For property purchased after July 23, 2024: only 12.5% without indexation applies. This one choice can save ₹3-8 lakhs on a typical property sale.
- Provisions and law
- Sec 45; Sec 72 (old 48); Finance Act Budget 2024; Sec 78 (old 50C); Sec 197 (old 112)
- Analysis
- The Budget 2024 transitional choice, worked example: Property bought 2015 for ₹40L. Sold 2025 for ₹1Cr. Holding: 10 years. OPTION A (12.5% no indexation): LTCG = ₹1Cr − ₹40L = ₹60L. Tax = ₹7.5L. OPTION B (20% with CII indexation): CII 2015 = 254, CII 2025 = 363 (approx). Indexed cost = ₹40L × 363/254 = ₹57.1L. LTCG = ₹1Cr − ₹57.1L = ₹42.9L. Tax = 20% × ₹42.9L = ₹8.58L. OPTION A (12.5%) is LOWER. Choose Option A. When Option B (20% with indexation) wins: If property was bought in 1995-2005 era: very high indexation benefit. Example: bought 1998 for ₹8L, sold 2025 for ₹60L. CII 1998 = 351, CII 2025 = 363. Wait, CII doesn't go that far back directly. For very old properties: use FMV as on April 1, 2001 as the cost (instead of actual cost). This resets basis to 2001 FMV which is much higher than 1998 cost. Then index from 2001.
- Conclusion
- Determine purchase date: if before July 23, 2024 → get both options. After → only 12.5%.
- For pre-Jul 2024 property: compute LTCG under BOTH options, pick whichever gives lower tax
- Gather cost documents: purchase deed, stamp duty receipts, registration charges, brokerage paid
- List all cost of improvement: major renovation with bills, structural additions with contractor bills
Crypto Tax: 30% Flat, No Deductions (Section 194, old 115BBH)
- Facts
- India's harshest investment tax rate. 30% on every gain. No deductions allowed except purchase cost. Losses cannot offset salary or any other income. 1% TDS on every sale. Every swap, every NFT mint, every staking reward is a taxable event. Many investors do not know that swapping BTC for ETH creates a tax liability.
- Provisions and law
- Sec 194 (old 115BBH); Sec 393 (old 194S); Sec 2(111) (old 2(47A)); Schedule VDA
- Analysis
- Every transfer is taxable, not just INR withdrawal: Sell crypto for INR = transfer (taxable). Swap BTC for ETH = two transfers (BTC sold at current price in INR, ETH bought at current price). Using crypto to pay for goods = transfer at FMV. Receive crypto for freelance work = income at FMV on receipt date. Mining reward = income at FMV on mining date. Staking reward = income at FMV on receipt. Gift crypto to non-relative = transfer at FMV for giftor. Each of these creates tax. No deductions except acquisition cost: Purchase price in INR = allowed. Exchange fees at PURCHASE = allowed (part of cost). Transfer fees on SALE = NOT allowed (only acquisition cost). Electricity cost for mining = allowed as cost. Interest on loan to buy crypto = NOT allowed. Depreciation = NOT allowed.
- Conclusion
- Export complete transaction history from all exchanges: buy/sell/swap history in CSV
- Identify every taxable event: sale, swap, mining reward, staking reward, payment received in crypto
- For each: calculate gain = INR value at sale date minus INR cost at purchase date
- Net VDA gains/losses within same year (crypto losses can offset other crypto gains)
Selling a house? Save the tax before you sign.
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