Chartered Accountants in India, working with clients across the UK

Capital Gain Computation
Capital Gains · Computation

Capital gain computation,figure by figure.

A capital gain looks simple: sale price minus cost. In practice, Indian law asks which value counts, which costs are allowed, what to do for inherited or pre-2001 property and when indexation applies. We prepare a computation that holds up with the tax department and the buyer's TDS.

Every figure supportedFees agreed in writingReady for TDS and returns
FormulaValue less cost and expenses
Property valueHigher of price and stamp value
Old assets1 April 2001 value
InheritedPrevious owner's cost

The formula.

Long-term gain on a flat
Full value of consideration₹1,00,00,000
Less cost of acquisition₹40,00,000
Less cost of improvement₹5,00,000
Less transfer expenses₹1,50,000
Long-term capital gain₹53,50,000

Key rules.

  • Stamp duty valueFor land and buildings, the stamp duty value is used if it is more than 110% of the price.
  • Assets bought before April 2001The fair market value on 1 April 2001 can be used as cost, capped at stamp duty value for property.
  • Inherited and gifted assetsThe previous owner's cost and holding period are used.
  • ImprovementsOnly improvements after April 2001, supported by bills.
  • Transfer expensesBrokerage, legal fees and stamp duty paid by the seller.
  • IndexationResidents can choose 20% with indexation for land and buildings bought before 23 July 2024; NRIs cannot.

The UK computation is different.

If you are UK resident, HMRC computes the same gain in pounds, using exchange rates at purchase and sale, with UK rules on costs. The UK gain can be very different from the Indian one. We give your UK accountant the Indian figures and dates. See UK Tax Implications & Reporting.

Why NRIs in the UK choose us for India tax.

Both sides of the border

We work with the India side of your tax while keeping your UK Self Assessment and treaty position in view.

Reviewed before filing

Every computation is checked by a second Chartered Accountant before anything is filed.

Fees agreed in writing

A written scope and fee before work starts, with no surprise charges later.

Secure and fully online

Encrypted document sharing and e-verification, so nothing needs a trip to India.

One team all year

Returns, TDS refunds, FEMA questions and property sales handled by the same team.

Plain-English answers

Clear explanations of what you owe, why, and what to keep for next year.

Gain computations for NRIs across the UK.

We prepare and file Indian income tax returns for NRIs, returning Indians and UK businesses with Indian entities, wherever they are in the UK. Everything is done online.

London

City of LondonCanary WharfHarrowWembleySouthallHounslowIlfordEast HamCroydonEdgware

South East

ReadingSloughMilton KeynesOxfordWatfordLutonCrawleyGuildford

Midlands

BirminghamLeicesterCoventryNottinghamWolverhamptonDerbyNorthampton

North of England

ManchesterLeedsBradfordSheffieldLiverpoolNewcastlePreston

East and South West

CambridgePeterboroughBristolSwindonSouthamptonBath

Scotland, Wales, NI

EdinburghGlasgowAberdeenDundeeCardiffSwanseaBelfast

Capital gain computation FAQs.

The higher of the actual price and the stamp duty value, where the stamp value is more than 110% of the price.
The cost to the previous owner is used, along with their holding period.
The fair market value on 1 April 2001 can be used as cost, usually supported by a valuer's report.
No. The indexation option for older land and buildings is available only to resident individuals and HUFs.

Need a gain worked out properly?

Send us the documents. We will prepare a computation that holds up.

This page is general guidance based on the Income-tax Act, 2025 and the rules and return forms as they stand. It is not legal or financial advice for your situation. Forms, eligibility and due dates can change each year, so please check with us before filing.