LTCG on Sale of land bought on 23.07.14 and sold on 15.04.26

Your friend should choose the Old Rule because it results in a Nil Tax liability.

• Tax Payable: ₹0

• Benefit: He can actually carry forward the calculated capital loss (approx. ₹73,437) to offset against any future Long-Term Capital Gains for up to 8 years, provided he files his ITR on time.

Ensure your friend keeps the sale deed and purchase deed handy, and consider any registration fees or brokerage paid during purchase/sale, as these can be added to the cost to further increase the loss/reduce gains.

Indexed cost of acquisition. 

Holding period > 24 months on land, so under Sec 2(29A)/2(42A) it's a long-term capital asset. Post Finance (No. 2) Act 2024, for land/building transferred on or after 23.07.2024 the taxpayer gets to choose (proviso to Sec 112(1)): (a) 12.5% without indexation, or (b) 20% with indexation under Sec 48 second proviso (only available to resident individuals/HUF for land & building acquired before 23.07.2024). Option A: (12,50,000 − 8,25,000) × 12.5% = ₹53,125. Option B: Indexed cost = 8,25,000 × (363/240) ≈ ₹12,48,125, LTCG ≈ ₹1,875, tax @ 20% = ₹375. Option B clearly wins here. New regime (Sec 115BAC) doesn't affect capital gains rates — those are special rates, they sit outside the regime. File as LTCG under "Capital Gains" schedule regardless.

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