LTCG on property sale after 24jul2024

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subhash

MBA

20 Points Posted on 22 June 2026

my query is like this:
For FY2025-26
I sold my residential property for a consideration of 100,00,000 (1 Cr) on 01/07/2025.
The purchase cost of this property was Rs 20,00,000 in Year 2008-09.
Indexed cost of this property is approx. 60,00,000

Thus LTCG after indexation was approx 40,00,000 (100,00,000-60,00,000)

After the sale, I purchased another residential property on 01/09/2025 for a price of 41,00,000 (all inclusive) to take benefit under section 54

Thus my LTCG should be 0 (40,00,000 -41,00,000). Im correctly being charged 0 tax on LTCG after section 54 rebate and indexation of cost.
My income from other sources was 25,00,000 during the year
However while calculating my Total Income , the portal adds the unindexed LT capital gain of Rs 40,00,000 to my other sources income of 25,00,000 and puts my total income as 65,00,000 which triggers the surcharge at 10%. is this surcharge correct? is this the intent of relief given on indexation?

Replies (2)

Aashok Kumar Sharma

Finance/Compliance Consultant

62031 Points Posted on 22 June 2026

Form 10E: You may manually override incorrect automated tax figures with your own accurate calculation, but you must keep a detailed, written working sheet of your calculation as proof for future verification.
Surcharge: Surcharge thresholds are determined by your Total Income, which usually includes capital gains before exemptions like Section 54 are applied. The portal's logic in triggering the surcharge based on this higher total income is generally consistent with current assessment procedures.

Aashok Kumar Sharma

Finance/Compliance Consultant

62031 Points Posted on 22 June 2026

Form 10E: You may manually override incorrect automated tax figures with your own accurate calculation, but you must keep a detailed, written working sheet of your calculation as proof for future verification.
Surcharge: Surcharge thresholds are determined by your Total Income, which usually includes capital gains before exemptions like Section 54 are applied. The portal's logic in triggering the surcharge based on this higher total income is generally consistent with current assessment procedures.