Property Sale Tax Advisory — Capital Gains & TDS
Sold or selling a house, plot or flat? Get your capital gains computed the right way — LTCG at 12.5% or 20% with indexation, Section 54/54F/54EC exemptions, 1% TDS under Section 194-IA and NRI TDS under Section 195. CA-managed, 100% online, with a clear quote upfront.
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What Is Property Sale Tax Advisory?
A quick, plain-language explanation before the details.
Property sale tax advisory helps you compute and report the capital gain that arises when you sell immovable property — a house, flat, plot or commercial unit — and legally minimise the tax on it through the right method and exemptions.
Capital gains on sale of a capital asset are charged under Sections 45–55A of the Income-tax Act. Property held over 24 months is long-term; post Budget 2024 LTCG is taxed at 12.5% without indexation, with a 20%-with-indexation option for pre-23 July 2024 assets held by residents. Exemptions are available under Sections 54, 54F and 54EC.
Administered by the Income Tax Department via the e-filing portal (eportal.incometax.gov.in), where the gain is reported in ITR-2/ITR-3 and buyer TDS is filed through Form 26QB.
The gain is reported for AY 2026–27 (FY 2025–26); the non-audit due date is 31 July 2026 and the return must be e-verified within 30 days to be valid.
Quick Facts
Is This Service Right for You?
Ideal for
- Residents selling a house, flat, plot or commercial unit
- NRIs selling Indian property facing higher TDS under Section 195
- Buyers who must deduct 1% TDS under 194-IA and file Form 26QB
- Heirs selling inherited or gifted property needing cost & holding period fixed
- Sellers reinvesting proceeds in a new house or 54EC bonds
- Joint owners and HUFs needing the gain apportioned by share
You may need this if
- You have sold or are selling immovable property this year
- You want LTCG computed both ways and the lower-tax method chosen
- You want to claim exemption under Section 54, 54F or 54EC
- TDS was deducted under 194-IA or 195 and you want the credit or refund
- You are an NRI wanting a lower/nil-deduction certificate (Section 197)
- You received an AIS/SFT mismatch notice on a high-value sale
Not sure if you need this?
Talk to an Expert →Why Property Sale Tax Advisory is Important
Getting the method, exemptions and TDS right on a property sale can materially change your tax and keep you off the notice list. Here is why it matters.
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01
Correct Gain, Lower Tax
We compute LTCG both ways — 12.5% flat vs 20% with indexation — and use the method that legally costs you less.
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02
Save Tax with Section 54
Reinvest in a residential house (54/54F) or in 54EC bonds up to ₹50 lakh to claim exemption on your gains.
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03
TDS Not Lost
1% under 194-IA, or the Section 195 deduction for NRIs, is reconciled against Form 26AS and AIS so every rupee is claimed as credit or refund.
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04
NRI Section 197 Relief
Apply for a lower/nil-deduction certificate so buyers do not lock up large TDS on your sale proceeds.
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05
Avoid 234B/C Interest
Pay advance tax on the gain in the right instalment to avoid interest under Sections 234B and 234C.
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06
Notice-Proof Filing
High-value SFT-reported sales draw scrutiny. Clean computation and disclosure keeps you off the notice list.
Simple, Transparent Pricing
Custom quote for your case
Fees depend on your business type and scope. Get a clear, itemised quote upfront — no hidden professional charges, government fee billed at actuals.
Who Can Apply?
Eligibility checklist
- Sale deed and purchase deed with dates and consideration
- Cost of acquisition and improvement proofs (and inheritance/gift history if any)
- TDS challans / Form 16B / Form 26QB and 26AS & AIS statements
- Residency status of the seller (resident or NRI)
- Reinvestment details — new house, 54EC bonds or Capital Gains Account Scheme
- Ownership share where the property is jointly held
Everything You Need. One Professional Team.
Consultation
Understand the sale — property type, dates, price, cost and residency status.
Gain Computation
Compute LTCG both ways (12.5% flat vs 20% with indexation) and the short-term gain where applicable.
Exemption Planning
Plan and apply Section 54, 54F and 54EC exemptions, including the Capital Gains Account Scheme.
TDS Reconciliation
Reconcile 194-IA / 195 TDS with Form 26AS and AIS so credit is not lost.
NRI Lower TDS (197)
Apply for a lower/nil-deduction certificate under Section 197 for NRI sellers.
Stamp-Duty Value Check
Compare consideration with stamp-duty value under Section 50C and address any variation.
Return Preparation
Prepare and e-file ITR-2 / ITR-3 with capital gains fully disclosed.
Notice & Refund Support
Reconcile AIS/SFT, follow up refunds and respond to any query.
What You’ll Receive
What Documents Are Required for Property Sale Tax Advisory?
Requirements are grouped by sale/cost proofs, TDS and reinvestment. Keep clear scans (PDF/JPG) ready — everything is collected securely online, with no office visits.
Sale & Cost Proofs
Establish gain and holding period- Sale deed / agreement with dates and consideration
- Purchase deed and cost-of-acquisition proof
- Cost-of-improvement bills (renovation, additions)
- Inheritance / gift history where the property was not bought
- Stamp-duty valuation / circle-rate details (Section 50C)
TDS & Tax
Tax already deducted or paid- TDS challans / Form 16B (194-IA) or Form 27Q (195)
- Form 26QB filed by the buyer
- Form 26AS (tax credit statement)
- AIS / TIS (Annual Information Statement)
- Advance-tax challans paid on the gain
Reinvestment & Other
Where applicable- New house purchase / construction proofs (Section 54/54F)
- 54EC bond investment proof (NHAI/REC/PFC/IRFC)
- Capital Gains Account Scheme deposit details
- Co-owner details and ownership share
- PAN and Aadhaar (linked); passport for NRIs
Holding period decides the rate
Immovable property held for more than 24 months is long-term (LTCG); held for 24 months or less it is short-term and taxed at your slab rate. Purchase and sale dates fix this.
Stamp-duty value (Section 50C)
If the consideration is below the stamp-duty value (beyond the tolerance band), the stamp-duty value is deemed to be the sale price for computing the gain. Keep the circle-rate/valuation on file.
Match 26AS and AIS
Sub-registrars report property sales of ₹30 lakh+ in the AIS/SFT. Your reported gain must match, and 194-IA/195 TDS must be reconciled so credit is claimed and mismatch notices avoided.
NRI sellers — higher TDS
For an NRI seller the buyer deducts TDS under Section 195 at the LTCG rate plus surcharge and cess — far higher than 1%. A Section 197 certificate reduces it; excess is refunded on filing.
Don’t have all the documents?
We’ll identify what your case needs →From Sale Deed to Filed Return (Step by Step)
The entire process is 100% online through the income-tax e-filing portal, with status updates throughout.
Consultation
Share sale details — property type, dates, price and residency status.
Documents
Collect sale & purchase deeds, cost proofs, TDS challans, 26AS and AIS securely online.
Gain Computation
LTCG computed both ways — 12.5% flat vs 20% with indexation — plus 54/54F/54EC planning.
Review & Tax Plan
You review the computation, exemption plan and net tax/refund position.
E-Filing
ITR-2/ITR-3 e-filed with capital gains disclosed and e-verification completed.
Follow-up
TDS credit tracked, refund followed up and any AIS query answered.
How Long Does Property Sale Tax Advisory Take?
| Stage | Expected Time |
|---|---|
| Consultation & document collection | Day 1–3 |
| Gain computation (both methods) & exemption plan | Day 3–5 |
| Client review & tax plan approval | Day 5–7 |
| E-filing & e-verification | Day 7–10 |
A typical advisory-and-filing engagement completes within 7–10 working days once documents are complete. NRI Section 197 certificate cases and complex inherited/joint-owner matters may take longer. Buyer 194-IA TDS via Form 26QB is due within 30 days of the month-end of payment.
Key Dates — At a Glance
| Frequency | What Is Due |
|---|---|
| On Sale / +30 Days | Buyer deducts 1% TDS (194-IA) or Section 195 for NRIs · Buyer files Form 26QB within 30 days of month-end · Buyer issues Form 16B / 27Q to the seller |
| Within Timelines | Reinvest in a house (Section 54/54F) within the window · Invest in 54EC bonds within 6 months (up to ₹50 lakh) · Deposit unused gains in the Capital Gains Account Scheme |
| Quarterly | Pay advance tax on the gain (15 Jun–15 Mar) · Track TDS credited in Form 26AS · Review AIS for the reported property transaction |
| At Filing | Report the gain in ITR-2 / ITR-3 for AY 2026–27 · E-verify the return within 30 days · Claim refund of excess TDS and respond to any query |
Dates are indicative and may change with government notifications. Our team tracks every deadline so you never miss a filing.
Doing It Yourself vs TaxClue
Doing It Yourself
- Work out holding period and the correct LTCG rate yourself
- Compute the gain both ways — 12.5% flat vs 20% with indexation
- Apply cost of acquisition, improvement and indexation correctly
- Plan Section 54 / 54F / 54EC exemptions within their timelines
- Reconcile 194-IA / 195 TDS with Form 26AS and AIS
- Handle NRI Section 195 TDS and the Section 197 certificate
- Risk notices, blocked TDS credit and extra tax on errors
With TaxClue
- Expert fixes the holding period and correct LTCG rate
- Both LTCG methods computed — the lower-tax option chosen
- Cost, improvement and indexation applied accurately
- Section 54 / 54F / 54EC exemptions planned upfront
- 194-IA / 195 TDS reconciled with 26AS and AIS
- NRI Section 197 lower/nil-TDS certificate handled
- Clean, notice-free filing with refund follow-up
Skip the guesswork.
Let an expert handle it →Common Mistakes That Delay Your Application
TaxClue reviews your documents before filing to reduce avoidable errors.
What to Keep in Mind After the Sale
On Sale / +30 Days
- Buyer deducts 1% TDS (194-IA) or Section 195 for NRIs
- Buyer files Form 26QB within 30 days of month-end
- Buyer issues Form 16B / 27Q to the seller
Within Timelines
- Reinvest in a house (Section 54/54F) within the window
- Invest in 54EC bonds within 6 months (up to ₹50 lakh)
- Deposit unused gains in the Capital Gains Account Scheme
Quarterly
- Pay advance tax on the gain (15 Jun–15 Mar)
- Track TDS credited in Form 26AS
- Review AIS for the reported property transaction
At Filing
- Report the gain in ITR-2 / ITR-3 for AY 2026–27
- E-verify the return within 30 days
- Claim refund of excess TDS and respond to any query
Penalties & Consequences
What is at stake if you do not comply
- Using one LTCG method or wrong indexation overtaxes the gain
- Missing the Section 54/54F/54EC reinvestment window forfeits the exemption
- Section 50C substitutes the stamp-duty value, inflating the taxable gain
- Section 195 TDS on an NRI sale locks up cash without a Section 197 certificate
- Unreported high-value sale triggers an AIS/SFT mismatch notice
Regulatory Updates 2025–26
- Jul 2024: For property and other assets, LTCG is 12.5% without indexation, with an option of 20% with indexation for assets acquired before 23 July 2024.
Why Businesses Choose TaxClue
CA / CS Team
Qualified Chartered Accountants and Company Secretaries with deep capital-gains expertise handle your case.
End-to-End
From consultation to e-verification — fully managed, with minimal effort from you.
Fast Turnaround
Committed timelines with proactive status updates. No delays, no excuses.
100% Online
Everything over WhatsApp / email — no office visits ever required.
Transparent Fees
A clear quote confirmed upfront — ₹0 hidden professional charges.
Refund & Notice Support
TDS credit, refund follow-up and AIS/notice handling covered.
Your Documents Deserve Professional Care
- Documents handled by professionals under confidentiality
- Access limited to the team working on your file
- Communication over secure digital channels
- Documents retained only as long as needed for compliance
Frequently Asked Questions
How is tax on sale of property calculated?
What is the 12.5% vs 20% with indexation choice?
How much TDS is deducted on sale of property?
How can I save tax on capital gains from property?
Which ITR form do I file for a property sale?
How is an NRI selling property in India taxed?
What is Section 50C and the stamp-duty value?
How is capital gain split for jointly owned property?
What if I do not pay advance tax on the gain?
What is the Capital Gains Account Scheme (CGAS)?
I sold inherited property — how is the cost worked out?
How does the first consultation work?
What is the tax on selling a house in India?
How can I save capital gains tax when I sell a plot of land?
How much tax do I pay on selling agricultural land?
How is capital gains tax calculated on inherited property that I then sell?
What TDS applies when I buy property worth ₹50 lakh or more?
Official Sources & Legal References
Every regulatory figure on this page — rates, timelines, TDS and sections — is drawn from primary law and official government sources. Verify them directly:
- Income Tax Department — Department portalOfficial portal of the Income Tax Department
- Income Tax e-Filing portal — ITR, 26QB & Form 13File your ITR, buyer TDS (26QB) and lower-TDS applications
- Income-tax India — Acts, rules & circularsCapital-gains and TDS provisions, Sections 54/54EC and 194-IA/195
- Protean (TIN-NSDL) — TDS challans & 26ASTDS challans, Form 26AS and tax payment services
Related Guides
Section 54 / 54F / 54EC Exemptions
Read guide ArticleSection 50C & Stamp-Duty Value
Read guide ArticleAgricultural Land Capital Gains
Read guide ArticleCompulsory Acquisition of Property
Read guide ArticleNRI Property Sale & FEMA
Read guide ArticleITR-2 Filing with Schedule CG
Read guide ArticleCapital Gains on Unlisted Shares
Read guide ArticleCapital Gains Tax on Gold
Read guideProperty Sale Tax Advisory Resources — All Free
Get Your Property Sale Tax Advisory Done — Talk to a CA
Expert-managed capital-gains advisory on your property sale — both LTCG methods compared, Section 54/54F/54EC exemptions planned, 194-IA/195 TDS reconciled, and ITR-2/ITR-3 e-filed. Consultation, transparent fee confirmed upfront, zero hidden charges.
Talk to a CA Expert →