Inputs
For resident individuals holding at least three years, so every gain is long-term. Tax rules are for 2026-27; exemptions for reinvesting plot gains are not included.
Filled in for youPlot growing 5% a year, fund returning 10%, 10 years, buying, holding and selling costs
Verdict
The mutual fund comes out ₹17.14 lakh ahead after 10 years
The fund leaves you ₹28.88 lakh in today's rupees.
This answer uses an example plot, rates and tax. Put in yours to get your own answer.
- Plot₹30.08 lakh
After ₹1.34 lakh capital-gains tax on the gain and ₹50,000 of yearly costs
- Fixed deposit₹34.57 lakh
After ₹7.92 lakh tax on the interest over the years
- Equity mutual fund₹51.71 lakh
After ₹4.31 lakh long-term capital-gains tax on gains above ₹1,25,000
Equity returns are not guaranteed. A fund can fall in value, and can stay below what you put in for years. The return used here is an assumption, not a forecast; try lower ones to see how the answer changes.
How equity gains are taxed
- Held 12 months or less: short-term, taxed at 20% of the gain.
- Held longer: long-term, taxed at 12.5% of the gains above ₹1,25,000 in a year.
- Plus 4% cess on the tax. PPF interest is tax-free; FD and RD interest is taxed every year at your slab rate.
- The amounts above already have this tax taken off.
- Plot, a year
- 3.37%
- FD, a year
- 4.82%
- Fund, a year
- 9.12%
Yearly returns are after tax and costs, on the ₹21.60 lakh the plot costs today.
Saved scenarios
What would flip the answer
Each line changes one input and holds the rest.
None of the inputs we test flips the answer within a realistic range.
Not modelled: weigh these yourself
Show the workingEvery step of the sum, with the numbers above.
Show year by yearWhat each option would leave you if you sold in that year, and the plot at other growth rates.
| Year | Plot | Fixed deposit | Equity mutual fund |
|---|---|---|---|
| 1 | ₹20.53 lakh | ₹22.64 lakh | ₹23.64 lakh |
| 2 | ₹21.51 lakh | ₹23.73 lakh | ₹25.71 lakh |
| 3 | ₹22.40 lakh | ₹24.87 lakh | ₹27.98 lakh |
| 4 | ₹23.33 lakh | ₹26.07 lakh | ₹30.48 lakh |
| 5 | ₹24.32 lakh | ₹27.33 lakh | ₹33.24 lakh |
| 6 | ₹25.36 lakh | ₹28.64 lakh | ₹36.26 lakh |
| 7 | ₹26.45 lakh | ₹30.02 lakh | ₹39.59 lakh |
| 8 | ₹27.60 lakh | ₹31.47 lakh | ₹43.25 lakh |
| 9 | ₹28.81 lakh | ₹32.98 lakh | ₹47.28 lakh |
| 10 | ₹30.08 lakh | ₹34.57 lakh | ₹51.71 lakh |
If sold that year, after tax and costs. The highest is in brass.
If plot prices grow faster or slower
How this works
The tool takes what the plot really costs you today, price plus stamp duty, registration and other buying costs, and puts the same money in a fixed deposit and an equity mutual fund. After the years you choose, the plot is sold (less selling costs and capital-gains tax, with its yearly costs taken off), FD interest has been taxed every year at your rate, and the fund is sold with capital-gains tax above the yearly exemption. Whichever leaves you the most is ahead.
Assumptions and sources
| Assumption | Value | Source | As of |
|---|---|---|---|
| Long-term capital-gains tax | 12.5% | PIB, 'Union Budget 2024-25: Key Tax Reforms and Relief Measures' (July 2024): long-term gains on all financial and non-financial assets 12.5% without indexation; exemption on equity gains raised to ₹1.25 lakh a year from FY 2024-25; short-term gains on specified financial assets 20%. ₹1,25,000 exemption also in CBDT ITR-1 validation rules AY 2026-27, rule 217. Unchanged for tax year 2026-27 (PIB New India Samachar, February 2026, p. 25). Holding periods (listed securities one year, all other assets two years): CBDT FAQs on the new capital-gains regime, PIB release PRID 2036604 (July 2024); units held 12 months or less are treated as short-term. | 2026-10-21 |
| Yearly exemption on equity gains | ₹1,25,000 | PIB, 'Union Budget 2024-25: Key Tax Reforms and Relief Measures' (July 2024): long-term gains on all financial and non-financial assets 12.5% without indexation; exemption on equity gains raised to ₹1.25 lakh a year from FY 2024-25; short-term gains on specified financial assets 20%. ₹1,25,000 exemption also in CBDT ITR-1 validation rules AY 2026-27, rule 217. Unchanged for tax year 2026-27 (PIB New India Samachar, February 2026, p. 25). Holding periods (listed securities one year, all other assets two years): CBDT FAQs on the new capital-gains regime, PIB release PRID 2036604 (July 2024); units held 12 months or less are treated as short-term. | 2026-10-21 |
| Health and education cess | 4% | Slabs, rebate, cess and surcharge threshold: Income Tax Department e-filing portal, 'Salaried Individuals for AY 2026-27' (incometax.gov.in/iec/foportal/help/individual/return-applicable-1). Standard deduction (₹75,000 new, ₹50,000 old) and the new-regime rebate edge of ₹12,70,590 (marginal relief): CBDT ITR-1 validation rules AY 2026-27, rules 112, 191, 192, 215. Unchanged for tax year 2026-27: PIB New India Samachar, February 2026, p. 25 ('No changes have been made to the income tax slabs or exemptions'). | 2026-10-21 |
| UP stamp duty and registration | —Not verified | UP stamp duty and registration fee for residential property (IGRSUP) | 2026-10-19 |
| FD interest rate | —Not verified | typical bank FD rate, cite bank or RBI data | 2026-10-19 |
| Home price growth a year (pessimistic / base / optimistic) | 3% / 5% / 7% | CapitalVerdict default assumption from project spec; user-editable, not a forecast | 2026-10-19 |
| Fund return before tax (scenarios) | 7% / 10% / 12% | CapitalVerdict default assumption from project spec; user-editable, not a forecast | 2026-10-19 |
Questions
Why does the plot start behind?
Because stamp duty, registration and buying costs are spent on day one and earn nothing. The FD and the fund get that same money invested. The plot also costs money to sell and to hold, and pays no income while you own it.
How is the tax worked out?
Plot and fund gains held long enough are taxed at 12.5% plus cess when you sell; for the fund, the first ₹1.25 lakh of gains in that year is exempt, assuming you have no other equity gains that year. FD interest is taxed every year at your own rate. The rules and sources are in the table above.
What does the tool leave out?
Exemptions for reinvesting plot gains in a house or certain bonds, surcharge on high incomes, rent or crops from the plot, and fund costs beyond what the return you enter already reflects. If any of these apply to you, adjust the inputs or ask a tax professional.