Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Capital gain on sale and purchase of plot

Save Share

This query is : Resolved

shikha (Querist)
Follow

08 September 2026 a person had purchased a plot in 2008 for rs 8 lakhs and now selling the same in 2026 for Rs 70 lakhs and invest 60 lakhs on purchase of other plot. what will be the capital gain as per income tax act 2025

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)
Follow

08 September 2026 The total long-term capital gain on the sale of the plot is ₹62,00,000 before indexation, and the purchase of another vacant plot provides no capital gain exemption unless a residential house is constructed on it within 3 years. Under current income tax rules for properties acquired before July 23, 2024, tax can be calculated either at 12.5% without indexation (resulting in a baseline tax of ₹7,75,000 plus cess) or at 20% with indexation, allowing the seller to pay whichever tax amount is lower.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now