Most people meet the capital gains the same way — someone quotes a number, it sounds reasonable, and there is no easy way to check it. That is exactly the gap this guide closes. By the end of it you will know what the number is made of, where it usually goes wrong, and you will have run your own figures through our free capital gains.
Cover image slot — add a screenshot or illustration from Admin → Blog when it is ready.
Prefer to start with your own figures? Use the Capital Gains now, or continue for the formula and a worked example.
How the calculation actually works
Deducts indexed cost from sale price and applies asset-specific tax rates.
The formula behind it:
Gain = Sale Price - Cost Basis
| Symbol | What it means |
|---|---|
CII |
Cost Inflation Index |
LTCG |
Long Term Capital Gain |
Nothing is rounded away quietly and nothing is assumed on your behalf. If a figure appears in the result, it came from something you entered.
Let us run one real set of numbers
Tax on property sold for ₹1 Cr purchased for ₹40L 10 years ago.
Change any one input and watch the result move — that sensitivity is the real lesson. It is far more useful than memorising a single outcome, because your own rate, tenure or contribution will never match the example exactly.
Using the Capital Gains, step by step
- Open the Capital Gains.
- Enter your figures. Use the ones on your statement, sanction letter or scheme document rather than a remembered number.
- Read the result card — the headline figure plus the breakdown that produced it.
- Adjust one input at a time to see what genuinely moves the outcome.
- Tap Download PDF to keep a copy of the calculation, with your inputs and assumptions printed on it.
The PDF takes a few seconds to build because it is a properly typeset report, not a screenshot. You will see a progress message while it is being prepared, and the download starts on its own.
Small habits that make a real difference
- Use Section 54/54F to save tax by reinvesting.
- Indexation helps reduce the tax impact on long-term assets.
The errors that cost the most
- Ignoring improvement costs incurred on the asset.
If you want to go a level deeper afterwards, read up on taxation of capital gains. Both come up the moment you start comparing options seriously.