What is Section 54EC?

Invest up to ₹50 lakh of the capital gain in specified bonds (NHAI, REC, PFC, IRFC) within 6 months of sale. They lock in for 5 years.

Is sale of agricultural land taxable?

Rural agricultural land (beyond specified distances from municipal limits) is not a capital asset, so no capital gains tax. Urban agricultural land is taxable but can use Section 54B if reinvested in agricultural land.

Capital Gains Tax on Land Sale — Indexation, 54F, 54EC

LTCG / STCG on sale of land with the post-July-2024 rules: 12.5% without indexation or 20% with indexation, plus Section 54F, 54EC and 54B exemptions.

Inputs

Purchase

Purchase date

Purchase costInclude stamp duty, registration and brokerage paid when buying.

₹

₹ 15 Lakh

Cost of improvementLevelling, boundary wall, development — capital spends after purchase.

₹

Sale

Sale date

Sale priceUse the stamp duty value if it is more than 110% of the actual price (Sec 50C).

₹

₹ 60 Lakh

Transfer expensesBrokerage and legal costs on the sale.

₹

₹ 1.2 Lakh

Your situation

Resident individual / HUFRural agricultural landUrban agricultural land (Sec 54B eligible)

Exemptions

Sec 54EC bondsMax ₹50 lakh, within 6 months of sale.

₹

Sec 54F — invested in a new houseBuy within 1 year before / 2 years after, or construct within 3 years.

₹

Tax payable — long-term gain

₹5,69,400

Best option: 12.5% without indexation · incl. 4% cess

Holding period

14 y 2 m

Long-term (> 24 months)

Gain (no indexation)

₹43.8 L

Gain (with indexation)

₹30.6 L

CII 200 → 376

CII for FY 2026-27 isn’t in our table yet, so FY 2025-26 (376) is used. The indexed figure may change slightly once CBDT notifies it.

Compare tax options

Option	Gain	Exemptions	Tax + cess
12.5% without indexation ✓	₹43,80,000	₹0	₹5,69,400
20% with indexation	₹30,60,000	₹0	₹6,36,480

Computation

Sale price: ₹60,00,000
Less: transfer expenses: − ₹1,20,000
Less: cost of acquisition: − ₹15,00,000
Capital gain: ₹43,80,000
Taxable gain: ₹43,80,000
Tax @ 12.5% + 4% cess: ₹5,69,400

Surcharge (for income above ₹50 lakh) is not included. If total income is below the basic exemption limit, residents can adjust the shortfall against LTCG.

How this calculator works

Land held for more than 24 months gives long-term capital gains. For sales on or after 23 July 2024, LTCG is taxed at 12.5% without indexation. Resident individuals/HUFs who bought before 23 July 2024 can instead choose 20% with indexation — whichever is lower. Rural agricultural land is not a capital asset and is fully exempt. Health & education cess of 4% applies; surcharge is not included.

Frequently asked questions

If you sell land (any long-term asset other than a house) and invest the net sale consideration in a residential house, gains are exempt in proportion to the amount invested. Investment is capped at ₹10 crore and you must not own more than one other house.