[How to] Save Capital Gains Tax on Sale of Property in India
Over the years, property is one of the high ticket items in one’s investment portfolio. Now the buying / selling are more frequent with good appreication. However, the investor needs to consider taxation aspects when buying & selling properties.
Any profit earned on sale of property is taxed as Capital Gains. The amount of tax depends of holding period of the property.
Short Term Capital Gain
Long Term Capital Gain
Holding Period
Asset Held of less than 3 years
Asset Held of more than 3 years
Tax
Added to Income and taxed at Individual's slab rates
20% after Indexation
For long term capital gain, tax liability is determined based on indexed cost of acquisition and improvement. Check – Cost Inflation Index & Calculation
How to Save Capital Gains Tax on Sale of Pr...