ITR-2 Schedule CG: Indexation cost ignored for land sale (showing 18L gain instead of LTCG loss)

The Income Tax portal is likely applying the new 12.5% tax rate (without indexation) by default. Look for an option within "Schedule CG" to toggle to the 20% tax rate with indexation, and ensure your acquisition date is correctly entered to trigger the indexation benefit. If the issue persists, update your ITR-2 offline utility to the latest version or consult a tax expert.

Same problem I am facing. There is some problem done by the software developers. They are only finding out indexed cost of acquisition and showing it in textbox. But while calculating capital gain, they are directly ignoring this value and using original cost of acquistion. And unnecessarily people will have to pay tax eventhough they aren't required to. We need to report to finance ministry about this.

This is a portal default issue for properties bought before July 23, 2024.

Under Budget 2024 amendments, you get two options for this property:
OPTION A: 12.5% tax, no indexation (gain = 48L minus 30L = 18L) ,  this is what the portal is defaulting to
OPTION B: 20% tax, with CII indexation (indexed cost = 30L x 363/148 = approx 74L, so 26L LOSS) ,  this is the correct and beneficial option

Steps to fix in ITR-2 (online portal or offline utility):
1. Go to Schedule CG, Part B (immovable property or land)
2. Find the section for acquisition date and confirm you enter January 2010 (before July 23, 2024)
3. Look for the field or toggle that says property acquired before July 23, 2024 ,  selecting this unlocks the 20% + CII indexation pathway
4. Enter indexed cost of acquisition: 30L multiplied by CII 363 divided by CII 148 = approximately 73.5L (round to 74L)
5. The system should then compute a 26L long-term capital loss, not a gain

This 26L LTCG loss can be carried forward for UP TO 8 YEARS to set off against future LTCG, provided you file the return before July 31, 2026.

If the offline utility is still defaulting, try downloading the latest version from incometax.gov.in ,  CBDT has been pushing utility updates through June and July 2026. This property capital gains guide for sellers (https://taxgarden.in/blog/tax-on-sale-of-property-india-capital-gains-seller-guide-ay-2026-27) has the full CII table and two-option comparison.