LTCG tax on 2resi property sold in 2026 bought in 2007 how much tax payable if proposed Sale value Rs1.5 Cr Pur Val Rs.35 L Pls let us know net LTCG tax payable post all available exemptions and no fresh property to buy

Ans: » LTCG calculation based on your figures

Your property was purchased in 2007.

The proposed sale is in 2026 for Rs.1.50 crore.

Assuming you are a resident individual, the property qualifies for the special grandfathering rule.

For properties acquired before 23 July 2024, the tax rules provide a comparison. The indexed 20% method can be beneficial for eligible resident taxpayers.

» Estimated indexed position

Your original purchase cost is Rs.35 lakhs.

Based on the applicable Cost Inflation Index, the indexed cost is approximately Rs.1.02 crore.

Therefore, the approximate indexed LTCG is around Rs.48 lakhs.

This is only a provisional estimate.

» Approximate tax payable

Using the indexed method, the basic LTCG tax would be around Rs.9.60 lakhs.

After 4% health and education cess, it would be around Rs.9.98 lakhs.

So, you may need to provide approximately Rs.10 lakhs towards tax.

The actual amount can change after considering eligible expenses and other details.

» Why 12.5% taxation may not be best here

For property acquired before 23 July 2024, resident taxpayers have the grandfathering comparison.

The tax is effectively compared under the 12.5% method and the earlier indexed 20% method.

The beneficial treatment can apply when the indexed method produces lower tax.

In your case, the indexed method appears more favourable.

» Section 54 exemption

You have clearly stated that you do not plan to purchase another residential property.

Therefore, Section 54 may not provide an exemption.

You should not assume that the entire capital gain will become tax-free.

» Section 54EC possibility

There is another route worth considering.

Eligible capital-gain bonds can provide exemption under Section 54EC.

The investment limit is generally Rs.50 lakhs.

Your estimated indexed gain is around Rs.48 lakhs.

Therefore, this provision could potentially cover the estimated gain.

However, investment decisions should not be made only for tax saving.

The lock-in period and return should also be evaluated.

» Check these items before selling

Please verify the following before finalising the transaction:

– Exact purchase date and purchase documents.

– Actual original purchase cost.

– Major eligible improvement expenses.

– Brokerage and other eligible selling expenses.

– Stamp duty value on the sale date.

– Your residential status.

– Buyer TDS requirements.

These factors can change the final tax amount.

» Stamp duty value is important

Please check the stamp duty value before executing the sale.

If the applicable stamp duty value is higher than the agreed consideration, special provisions may affect the capital gain calculation.

So, Rs.1.50 crore should not be treated as the final tax value without this check.

» My assessment

Based only on the figures provided, I would provisionally keep around Rs.10 lakhs for LTCG tax.

However, this is not necessarily your final tax.

The Section 54EC option deserves consideration.

It could potentially reduce the tax substantially.

If you do not use any exemption, the approximate tax remains around Rs.10 lakhs.

» One clarification

You mentioned "2 residential property".

If you are selling two separate properties, each property needs a separate calculation.

Please provide the purchase cost and sale value of each property.

Then the combined tax position can be assessed more accurately.

» Final Insights

Your long holding period is helpful from a tax planning perspective.

The grandfathering provision is especially important in your case.

Before signing the sale agreement, complete the tax review first.

A pre-sale review can prevent avoidable tax costs.

Best Regards,

K. Ramalingam, MBA, CFP,

AMFI-Registered MFD – ARN 4188

www.holisticinvestment.in/

https://www.linkedin.com/in/ramalingamcfp/