Capital Gains Tax Calculator (Property Sales)
Estimate capital gains tax on property sales in Nepal, India, or Pakistan with short-term vs long-term classification and indexation. Verify locally.
Nepal Income Tax Act; verify with current finance act
How this works
The taxable gain is the sale price minus the (optionally indexed) purchase price; the tax liability is the gain multiplied by the applicable rate:
indexedPurchase = (jurisdiction allows indexation && indexed && long-term)
? purchasePrice × costInflationFactor
: purchasePrice
taxableGain = max(0, salePrice − indexedPurchase)
isLongTerm = holdYears ≥ thresholdYears
rate = isLongTerm ? longTermRate : shortTermRate
taxLiability = taxableGain × rate
netGain = taxableGain − taxLiabilityIndexation only applies when the selected jurisdiction allows it (currently India in this calculator). The Cost Inflation Factor is the ratio of the sale-year CII to the purchase-year CII — look up the latest values from the Income Tax Department.
The default short-term and long-term rates are conservative national-level estimates. Statutory rates are revised annually and may carry surcharges, cess, or special slabs not modelled here. Verify with a chartered accountant before filing.
Worked example
Purchase price NPR 50,00,000, sale price NPR 75,00,000, holding period 5 years, jurisdiction Nepal:
- Long-term threshold for Nepal = 5 years, so this gain is long-term.
- Long-term rate for Nepal = 5%.
- Indexation is not applicable in Nepal — indexedPurchase = purchasePrice = NPR 50,00,000.
- Taxable gain = 75,00,000 − 50,00,000 = NPR 25,00,000.
- Tax liability = 25,00,000 × 0.05 = NPR 1,25,000.
- Net gain after tax = NPR 23,75,000.
Sources
- Nepal Income Tax Act; verify with current finance act
FAQ
What is capital gains tax on a property sale?
Capital gains tax is the tax payable on the profit you make when you sell a property for more than you paid for it. The taxable gain is the sale price minus the (optionally indexed) purchase price; the tax liability is that gain multiplied by the applicable rate. The rate depends on how long you held the property and on the jurisdiction.
What is the difference between short-term and long-term capital gains?
Most jurisdictions tax gains on a recently held property at a higher rate than gains on a long-held property. If your holding period is below the jurisdiction's threshold (2 years in India, 5 years in Nepal, 4 years in Pakistan as of the latest finance acts known to this calculator), the gain is classified as short-term and the higher rate applies. If you held it for at least the threshold, the gain is long-term and the lower rate applies.
What does indexation mean and when does it apply?
Indexation lets you adjust the purchase price upward to reflect inflation between the year of purchase and the year of sale. This shrinks the taxable gain and so the tax liability. India allows indexation on long-term capital gains using the government-published Cost Inflation Index (CII). Nepal and Pakistan do not currently offer indexation in this context — the indexation toggle has no effect when those jurisdictions are selected.
What should I enter for the Cost Inflation Factor?
The factor is the ratio of the sale-year CII to the purchase-year CII. For example, if you bought in FY 2014-15 (CII 240) and sell in FY 2024-25 (CII 363), the factor is 363 / 240 ≈ 1.5125. Default of 1.0 means no inflation adjustment. Look up the latest CII numbers from the Income Tax Department's website or your tax consultant before entering a value.
Are the default tax rates legally binding?
No. The default short-term and long-term rates in this calculator are conservative national-level estimates from the most recent finance acts known to us. Statutory rates are revised annually and may carry surcharges, cess, or special slabs that are not modelled here. Confirm the rate that applies to your specific case with a chartered accountant or tax lawyer before filing.
Does changing the currency convert NPR to INR or PKR?
No. The currency selector is a labelling change only. The numeric figures stay exactly the same — only the currency code in front of them changes. This calculator does not perform any foreign-exchange conversion. To estimate the gain on a sale in a different country, enter the purchase and sale prices in that country's currency and select the matching jurisdiction.