Fact-check notes
Last fact-checked: 2026-05-28
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. Tax Year 2026-27 references should be verified against the active 2025 Act utilities before filing.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
Property sellers should compute both options when the indexation choice is available, because old purchases can benefit significantly from indexed cost.
- Choice is relevant for qualifying resident individuals/HUFs and immovable property acquired before July 23, 2024.
- Compare tax under 12.5% without indexation and 20% with indexation before filing.
- CII values and purchase year documentation drive the answer.
- Section 50C can replace actual sale value with stamp-duty value in some cases.
Who this is for
- Resident seller of old property.
- Family selling inherited property.
- Seller whose registry value differs from consideration.
- CA preparing ITR-2 capital gains schedule.
Documents and data to verify
- Sale deed and purchase deed.
- CII year and cost support.
- Improvement bills and brokerage records.
- Stamp duty value and valuation report.
Common mistakes to avoid
- Choosing a rate without computing both.
- Ignoring Section 50C.
- No proof of improvement cost.
- Using indexation for assets that do not qualify.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.