Need help on Minimising Tax on Capital Gains

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Venkatesan V (Querist)
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04 January 2026 Hello All,

I own an Apartment which was registered yointly with my wife in october 2001 The sale deed shows only 3.85 Iakh — UDS only (guideline value 4.70 lakh) and the Total payment was 18 Iakh. I am a senior citizen and like to sell off this apartment and settle down in a temple town. have already purchased a 1BHK apartment in Joint names by using my Fixed deposits (25 lakh) —
registered in May 2023, and payment completed in October 2024.

we have found a buyer going for a bank loan and mostly the sale would be completed for 55 lakh in Mar—April 2026.

also would like to get expert opinions for

1.How to calculate the Long Term capital Gains and cost of indexation.
2. reducing the capital gains tax
3. process of showing these details in ITR and claim TDS on the sale.

Thanks in advance,

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 January 2026 Whether you have construction agreement justifying the total payment?

Venkatesan V

Venkatesan V (Querist)
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05 January 2026 Sir,
Thanks for the reply.

I have an allotment letter for the Apartment registered in 2001 stating the Project Cost as 1637440 and (3.85 is included in the cost) payment receipt of 1654988 (including extra work carried out like tiles,lofts etc).
Also after we moved in we did interior wood-working around 60000 for which the carpenter did not give any receipts. In 2011 we did a painting Job by Berger paints for 26000. do not have receipts for other small works done.

cost incurred for the New Apartment from 2023 to 2025 Sale deed shows Sale consideration as 281500 and the Construction agreement shows Full value as 2550000.

Can the Capital gain from this apartment sale be deducted from the cost of the new apartment which was bought three years ago using my fixed deposits.

how to calculate the capital gain, is there any option to reduce the tax and how to show these details in ITR.

Thanks,

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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05 January 2026 1. Capital gains deduction cannot be claimed for the apartment purchased before three years from the sell of earlier date.
2. For cost of the flat sold, consider COA as 16,37,440/- and index it to the sale year to pay tax at 20%.

Venkatesan V

Venkatesan V (Querist)
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05 January 2026 when indexing for from october 2001 to march 2026 the value comes to 6156774, but my sale value would be 5500000, then capital gains would become -656774 negative value.
does this mean no capital gains tax?

(
Sl. No. Financial Year Cost Inflation Index
(1) (2) (3)
1 2001-02 100
...
24 2024-25 363
25 2025-26 376
)

But how to show this in ITR

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 January 2026 Yes, no capital gains.
In ITR 2 Fill Schedule CG.
COA as 6156774/--
sell consideration... 5500000/-

Venkatesan V

Venkatesan V (Querist)
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06 January 2026 Under LTCG
In Deductions under section 48
bi. Cost of acquisition without indexation *
should we fill 6156774 here - (but it shows without indexation)

please clarify

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 January 2026 without indexation value will be 1637440/- only.

Venkatesan V

Venkatesan V (Querist)
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06 January 2026 Thank you for the advice.

So , there would be NO Capital Gains Tax.

1.We need not deposit the Sale Proceeds in any Capital Gains Bond or another property.
2.We can use the funds for fixed deposits in Banks without restrictions.
3.Still we have to pay TDS on the property sale and claim in ITR2

Hope i understand correctly.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 January 2026 1. Correct.
2. Yes.
3. TDS would be deducted by purchaser of the property, which you can claim in relevant ITR.

Venkatesan V

Venkatesan V (Querist)
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06 January 2026 THANK YOU VERY MUCH SIR !

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 January 2026 You are welcome.

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