Capital gains & TDS on property
Capital gains tax on selling property, the 12.5% / 20%-indexed choice, reinvestment exemptions, TDS when buying, NRI sellers, and which ITR to file — under the Income-tax Act 2025 with the 1961-Act section numbers alongside.
Guides
Questions answered
Key laws, rules, forms and judgments
Section 67, Income-tax Act 2025 - Capital Gains (successor to Section 45)
From 1 April 2026 the old Section 45 charge is Section 67. The core rule is unchanged, and it now also folds in the special JDA timing rule that used to be a separate Section 45(5A).
Section 67, Income-tax Act, 2025 · in force · source
24-Month Holding Period for Long-Term Capital Asset Status (Property)
Hold a property over 24 months before selling and your gain is 'long-term', with better tax treatment. This has applied since AY2018-19 and was NOT changed by the July 2024 budget reforms.
Section 2(42A), Income-tax Act 1961 / Section 2, Income-tax Act 2025 · in force · source
Section 72, Income-tax Act 2025 - Mode of Computation of Capital Gains
The old Section 48 computation formula continues here. The Cost Inflation Index is now defined and annually notified under Section 72(8)(a), confirmed by CBDT's FY2026-27 CII notification.
Section 72, Income-tax Act 2025 · in force · source
Section 78, Income-tax Act 2025 - Full Value of Consideration (successor to Section 50C)
Same stamp-duty-value rule as old Section 50C, now Section 78: sale price below SDV gets replaced by SDV for tax, unless within the 10% tolerance band.
Section 78, Income-tax Act 2025 · in force · source
Section 82, Income-tax Act 2025 - Residential House Exemption (successor to Section 54)
Section 54's reinvestment exemption continues unchanged as Section 82 - same Rs 10 crore cap, same time windows, same CGAS requirement.
Section 82, Income-tax Act 2025 · in force · source
Section 54B (1961) / Section 83 (2025) - Exemption on Sale of Agricultural Land
Sell agricultural land used for farming by you/your parents in the prior 2 years, buy new agricultural land within 2 years, and your gain is exempt. Continues as Section 83 under the new Act.
Section 54B, Income-tax Act 1961; Section 83, Income-tax Act 2025 · in force · source
Section 85, Income-tax Act 2025 - Capital Gains Bonds (successor to Section 54EC)
Old Section 54EC continues as Section 85, with the 6-month investment window and Rs 50 lakh cap expected to carry over.
Section 85, Income-tax Act 2025 · in force · source
Section 86, Income-tax Act 2025 - Reinvestment in Residential House (successor to Section 54F)
Old Section 54F continues as Section 86 - sell a long-term non-house asset, reinvest in a house within the same windows, and your gain (proportional to reinvestment) is exempt.
Section 86, Income-tax Act 2025 · in force · source
Sections 54D, 54G, 54GA (1961) - Compulsory Acquisition & Industrial Relocation Exemptions
Three narrower exemptions for industrial property: 54D for compulsorily-acquired land/building, 54G for shifting out of an urban area, 54GA for shifting specifically into an SEZ. All three continue as Sections 84, 87 and 88 under the 2025 Act.
Sections 54D, 54G, 54GA, Income-tax Act 1961 (now Sections 84, 87, 88, Income-tax Act 2025) · in force · source
Set-off and Carry Forward of Capital Losses on Property
A long-term property loss can only offset long-term gains, not short-term gains or salary/business income. A short-term loss can offset both. Unused losses carry forward 8 years, but only if the return is filed on time.
Sections 70, 71, 74, Income-tax Act 1961 · in force · source
Advance Tax on Capital Gains from Property
If your estimated annual tax exceeds Rs 10,000, you must pay it in instalments during the year. Since property sales are unpredictable, Section 234C waives interest on earlier instalments as long as you pay tax on the gain in the next instalment due.
Sections 208, 234C, Income-tax Act 1961 · in force · source
Section 393(1), Income-tax Act 2025 - Consolidated TDS on Property/Rent/Contractors
The new Act merges old Sections 194-IA, 194-IB, 194-I plus contractor/professional TDS into one Section 393(1), reported on one Form 141. The 1% rate and Rs 50 lakh threshold for property from a resident are unchanged - only the paperwork changed.
Section 393(1), Income-tax Act 2025 · in force · source
Section 197 - Certificate for Lower or Nil TDS Deduction
If default TDS would deduct far more than your real liability - very common for NRI sellers, since it often applies to the whole price not just the gain - you can apply in Form 13 to the Assessing Officer for a lower/nil deduction certificate.
Section 197, Income-tax Act 1961 · in force · source
Section 26, Income-tax Act 2025 - House Property Deductions (successor to Section 24)
The 30% standard deduction and home loan interest rules from Section 24 continue as Section 26 of the new Act.
Section 26, Income-tax Act 2025 · in force · source
Section 80C (1961) / Section 100 (2025) - Home Loan Principal Repayment Deduction
The principal portion of your home loan EMI, plus stamp duty/registration charges in the year paid, is deductible up to Rs 1.5 lakh/year, combined with other 80C items. Old regime only. Continues as Section 100 under the new Act.
Section 80C, Income-tax Act 1961; Section 100, Income-tax Act 2025 · in force · source
Sections 80EE & 80EEA - Extra Interest Deduction for First-Time/Affordable Housing Buyers
Extra home loan interest deduction on top of Section 24's Rs 2 lakh, but only for loans sanctioned in specific now-closed windows. 80EE: FY2016-17 loans, extra Rs 50,000. 80EEA: loans sanctioned 1-Apr-2019 to 31-Mar-2022, extra Rs 1.5 lakh. Both old-regime only.
Section 80EE and Section 80EEA, Income-tax Act 1961 · in force · source
New Tax Regime vs Old Tax Regime - Impact on House Property Income
The new regime (now default) has lower slabs but strips most property deductions. Self-occupied home loan interest is lost entirely; let-out interest is still deductible but any loss can only offset other house-property income, not salary.
Section 115BAC, Income-tax Act 1961 · in force · source
Income-tax Act 2025 - Overview and Transition from the 1961 Act
A full rewrite of India's income tax law, replacing the 1961 Act entirely. Assented 21 August 2025, in force since 1 April 2026. Almost every section number changed, which is the biggest source of confusion for property buyers/sellers right now.
Income-tax Act, 2025 (Act No. 30 of 2025) · in force · source
CBDT Notification 85/2026 - Cost Inflation Index for FY 2026-27 = 384
CII for FY2026-27 (Tax Year 2026-27) is fixed at 384, up from 376. Used to compute indexed cost for grandfathered pre-23-Jul-2024 property sales and other indexation-eligible cases.
Notification No. 85/2026-Income Tax · in force · source
CBDT Notification 70/2025 - Cost Inflation Index for FY 2025-26 = 376
For FY2025-26 (AY2026-27, being filed now in 2026), CII was fixed at 376 - the figure relevant for grandfathered property sales completed in that year.
Notification No. 70/2025-Income Tax · in force · source
CBDT Circulars 471 (1986) & 672 (1993) - Allotment Letter Date as Purchase Date
When buying a flat under a self-financing scheme (DDA, later cooperative societies, and by case law private builders too), the ALLOTMENT LETTER date counts as the purchase/construction date for tax purposes - not the final registered sale deed date.
Circular No. 471 dated 15-10-1986; Circular No. 672 dated 16-12-1993 · in force · source
CBDT FAQs on the New Capital Gains Tax Regime (Budget 2024-25)
Right after the July 2024 budget, CBDT released an official FAQ confirming the property holding period stayed at 24 months and explaining the new 12.5%/20% rate structure.
PIB Press Release, CBDT FAQs on Capital Gains Regime, Budget 2024-25 · in force · source
Official Form 141 FAQs - Transition from Form 26QB/26QC/26QD/26QE
The e-filing portal's own FAQ walks through how the consolidated Form 141 works - who files it, what it replaces, and its schedules for property, rent, contractors and VDAs.
Form 141 FAQs, Income Tax e-Filing Portal · in force · source
Form 141 - Consolidated Challan-cum-Statement (Property/Rent/Contractor/VDA TDS)
The new all-in-one TDS form replacing Forms 26QB, 26QC, 26QD and 26QE. For property, the rate and threshold are unchanged (1% above Rs 50 lakh) - only the form and reporting detail changed.
Form 141, filed under Section 393(1), Income-tax Act 2025 · in force · source
Form 132 - Consolidated TDS Certificate (successor to Form 16B/16C/16D/16E)
The new consolidated TDS certificate replacing Forms 16B, 16C, 16D and 16E, issued after Form 141 filing and downloaded from TRACES.
Form 132 · in force · source
Form 15CA - Declaration for Remitting Money Abroad
Before a bank remits money abroad (e.g. an NRI's property sale proceeds), the remitter files this online declaration on the nature and tax status of the payment - typically alongside Form 15CB for taxable amounts above the threshold.
Form 15CA, read with Rule 37BB · in force · source
Form 15CB - Chartered Accountant Certificate for Foreign Remittance
A practising CA certifies the nature of the payment, applicable rate, and TDS status before larger taxable remittances abroad. This certificate feeds into Form 15CA.
Form 15CB, read with Rule 37BB · in force · source
ITR-2 / ITR-3 Schedule CG - Reporting Capital Gains on Property
Report a property sale in Schedule CG of ITR-2 (no business income) or ITR-3 (with business/professional income, e.g. developers). For FY2024-25 returns, gains had to be split into pre- and post-23-Jul-2024 periods because the rate changed mid-year.
Schedule CG, ITR-2 and ITR-3 · in force · source
Form 26AS (now Form 168) - Annual Tax Statement
Your consolidated annual tax statement, showing TDS credited (including property-sale TDS), advance tax paid, and other transactions. Renumbered Form 168 under the new Act, content unchanged.
Form 26AS (Income-tax Act 1961); Form 168 (Income-tax Act 2025) · in force · source
Form 10-IEA - Opting Out of the New Tax Regime
Since the new regime is default, a taxpayer with business/professional income who wants the old regime (for home loan interest, 80C, 80EE/80EEA) must file this before the ITR due date.
Form 10-IEA · in force · source
Form 61A / SFT Reporting - Registrars Must Report High-Value Property Deals
Registrars must report to the tax department any property registration with stamp duty value of Rs 30 lakh or more - this is how the department knows about your purchase before you even file your return, and it shows up in your AIS.
Form 61A (Statement of Financial Transactions), Rule 114E · in force · source
CIT v. Balbir Singh Maini - JDA Not Taxable Without a Valid Registered Transfer
The Supreme Court held that merely signing a JDA doesn't itself trigger capital gains tax unless it satisfies the legal requirements of a valid 'transfer', including being validly registered where required.
(2017) 398 ITR 531 (SC) · in force · source
Sanjeev Lal v. CIT - Agreement-to-Sell Date Can Count for Section 54's Time Limit
Where litigation delayed the sale deed after an earlier agreement to sell, the Supreme Court took a practical view and let the earlier agreement date count for Section 54's 'one year before' window, so the taxpayer's earlier new-house purchase still qualified.
(2014) 365 ITR 389 (SC) · in force · source
CIT v. Rajesh Kumar Jalan - CGAS Deposit Can Be Made by the Belated Return Due Date
For Section 54/54F, if you can't reinvest right away, you must deposit unused gains in a CGAS account 'before the due date' of filing. This court held 'due date' includes the belated-return deadline, not just the original one - giving taxpayers extra room.
(2006) 286 ITR 274 (Gauhati) · in force · source
From CAPGAIN's law library (85 records in this area), checked 25 Sept 2026. Records still awaiting confirmation are not shown here.