Cost Calculations and Checklists
Selling a flat in India: how much will you actually receive? Net proceeds worked out
A seller's line-by-line calculation: sale price, brokerage with GST, loan closure, society dues, TDS credit and capital gains tax, ending with the money left in your account.
To work out what a sale leaves you with, start from the agreed price. Subtract brokerage plus 18% GST, your outstanding home loan, society and property tax dues, and your legal costs. Then set aside capital gains tax, minus the 1% TDS the buyer has already deducted on your behalf. On an illustrative ₹95 lakh sale with a ₹30 lakh loan outstanding, the seller below ends up with about ₹58.9 lakh in hand after tax, although the deed says ₹95 lakh. The steps follow, so you can repeat the sum with your own numbers.
All figures are illustrative.
Step 1: what lands in your account on registration day
Illustrative resale flat in Pune, sold in March 2026 (FY 2025-26) for ₹95,00,000, bought in FY 2017-18 for ₹55,00,000 including stamp duty and registration. The seller is a resident individual.
| Item | Working | Amount |
|---|---|---|
| Sale price | ₹95,00,000 | |
| TDS deducted by buyer | 1% of ₹95 lakh | −₹95,000 |
| Paid to the seller's lender to close the loan | Lender's foreclosure letter | −₹30,00,000 |
| Received in seller's account | ₹64,05,000 |
Floating-rate home loans taken by individuals carry no foreclosure charge under RBI rules, but check your sanction letter if your loan was fixed-rate. The buyer's bank will usually pay your lender directly against the original documents, and pay the balance to you.
Step 2: what you pay out of it
| Item | Working | Amount |
|---|---|---|
| Brokerage | 2% of ₹95 lakh = ₹1,90,000 + 18% GST ₹34,200 | −₹2,24,200 |
| Society dues and NOC charges | Arrears + NOC, illustrative | −₹15,000 |
| Property tax up to date | Illustrative | −₹12,000 |
| Seller's advocate and paperwork | Illustrative | −₹15,000 |
| Left after selling costs | ₹64,05,000 − ₹2,66,200 | ₹61,38,800 |
You can check these lines in the brokerage and net proceeds calculator. Enter the price, 2.36% and the other costs. The calculator ignores the loan, so subtract that separately.
Step 3: capital gains tax
Holding period: FY 2017-18 to March 2026, so more than 24 months and long-term. The flat was bought before 23 July 2024, so the seller can pick the lower of the two methods. CII 2017-18 = 272; CII 2025-26 = 376.
- Transfer expenses deductible: brokerage ₹2,24,200 + advocate ₹15,000 = ₹2,39,200. Society dues and property tax are not transfer expenses.
- Without indexation: ₹95,00,000 − ₹2,39,200 − ₹55,00,000 = ₹37,60,800 gain. Tax at 12.5% + 4% cess = ₹4,88,904
- With indexation: indexed cost = ₹55,00,000 × 376 ÷ 272 = ₹76,02,941. Gain = ₹95,00,000 − ₹2,39,200 − ₹76,02,941 = ₹16,57,859. Tax at 20% + 4% cess = ₹3,44,835
The indexed method is cheaper here by about ₹1.44 lakh. The flat's price rose more slowly than inflation-indexed cost, which is the case where indexation helps. Read capital gains tax on a property sale for the rules.
Tax still to pay = ₹3,44,835 − TDS ₹95,000 = ₹2,49,835, payable as advance tax in the instalments due after the sale.
Step 4: the final figure
- Left after selling costs: ₹61,38,800
- Less tax still to pay: ₹2,49,835
- Net cash in hand: ₹58,88,965
Counting the ₹30 lakh that went to clear the loan, the sale released ₹88.9 lakh of the seller's own equity. The money actually available to spend or reinvest is about ₹58.9 lakh, not the ₹95 lakh in the deed. If the seller reinvests in another house, Section 54 could remove most or all of the tax. See the Section 54 and 54EC guide.
What changes the result most
| Factor | Effect |
|---|---|
| Brokerage rate | Each 0.5% on ₹95 lakh, with GST, is about ₹56,000 |
| Method for capital gains (12.5% vs 20% indexed) | Can swing the tax by lakhs; compute both |
| Sale below the circle rate | Capital gain may be computed on the higher stamp duty value; see the circle rate guide |
| NRI status | TDS on the gain at around 13–15% instead of 1% |
| Selling within 24 months | Gain taxed at slab rates, often 30% plus cess for higher earners |
| Missing invoices | Brokerage and improvements without proof may be disallowed |
Seller's checklist before signing
- Ask your lender for the foreclosure statement and the timeline for releasing original documents.
- Collect the society NOC, the share certificate and the dues statement.
- Pay property tax and utility bills up to date and keep the receipts.
- Agree brokerage in writing, with GST and the trigger point.
- Check the buyer's TDS filing and download the certificate once it appears in your annual tax statement.
- Pay advance tax on the gain in the right quarter.
- Keep the purchase deed, stamp duty receipts and improvement bills for your cost calculation.
If you are the buyer in the same deal, see the total cost of buying a flat.
FAQ
Can I deduct the home loan interest I paid when calculating the gain?
Not if you have already claimed it as a deduction in earlier years. Most salaried owners have, so it usually cannot be added again.
Is the society transfer fee the seller's cost?
It depends on the society's bye-laws and what you agree. In Maharashtra co-operative societies, the transfer premium is often borne by the seller or split. Settle it in the agreement.
When do I pay capital gains tax?
Through advance tax in the instalments falling after the sale: 15 June, 15 September, 15 December and 15 March. Shortfalls carry interest. Any balance is paid before filing your return.
What if the buyer forgets to deposit TDS?
You will not see the credit in your annual tax statement. Ask the buyer for the challan details, and do not sign off the deal paperwork until the deposit is confirmed.
Sources
- Income Tax Department e-filing portal — advance tax, annual tax statement and returns
- Income Tax Department — cost inflation index notifications
- Reserve Bank of India — foreclosure charges and release of property documents
- See also the overview of buying and selling costs and the broker commission guide
