CG Tax On residential property

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This discussion addresses an issue with the ITR utility calculating capital gains tax at 15% instead of the correct 20% with indexation for residential property sales. The user is seeking a solution to rectify this calculation error. Another user suggests checking specific columns within the long-term CG schedule and the SI schedule to ensure the correct taxable amount is being deducted, which should lead to the proper 20% tax rate with indexation.

Kawai

Kawai (Querist)
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11 July 2026 ITR utility 2/3 is calculating tax @15% for sale of residential property purchased before the cutoff date, July 23, 2024, instead of 20% with indexation. How to correct it?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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11 July 2026 If you have entered the details correctly in sr. 1 of long term CG (schedule CG) then check the column eii. (excess amount..... Rs. xxx)...
Now check schedule SI.... the taxable amount in column 112A..... this amount xxx is deducted in the tax calculation as per 12.5% rate.... Thus finally it is taxed at 20% with indexation.

Kawai

Kawai (Querist)
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12 July 2026 Thanks Sir.Will try and revert

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 July 2026 Good luck.

Kawai

Kawai (Querist)
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12 July 2026 Still getting taxed @20%. Isn't 112 A for shares?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 July 2026 For shares sold on exchanges with LTCG the applicable sec is 112A, so fill Schedule 112A...
While for STCG the sec is 111A with 20% flat rate.

Kawai

Kawai (Querist)
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12 July 2026 It is residential property.112A is not applicable

Kawai

Kawai (Querist)
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12 July 2026 It is residential property

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 July 2026 If you have entered the LTCG of residential property in right column then as explained earlier the tax rate would be lower of the two options. as per schedule SI.

Kawai

Kawai (Querist)
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12 July 2026 Yes Sir,I just tried it in offline utility.Though the utility calculates tax @12,5% but the tax payable gets capped @20% of the indexed data.My CA could not do it.Maybe his software was not up to date. Thank you very much.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 July 2026 You are welcome.

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