How much is tax on sale of immovable property ?



Example : I bought a property 5 years back in 10 lacs. Now I am selling it in 20 lacs , how much tax I will have to pay?
Thanks.

How much is tax on sale of immovable property ?
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3 Replies to “How much is tax on sale of immovable property ?”

  1. Tax depends upon time duration between purchase and sale of property:

    Long term capital gain: Duration more than 3 years; tax would be 20% of profit

    Short term capital gain: Duration less than 3 years; tax would be 30% of profit.

    As per your example:
    Tax would be 2lacs; as its a long term gain on profit of 10lacs.

    Note: Tax is calculated on govt. registry rates i.e. white money.


  2. if you bought your property 5 year back and sold now and you get 10 lacs profit ,as per rule of capital gain 10 lacs divided by 5 and it comes 2 lacs .it will be treated as your income increase by 2 lacs per year and then the tax assessment made accordingly .


  3. the tax on long term property sale is 20.6% of capital gain.
    In the present case, the tax shall be 20.60% of (20lacs-10lacs*)

    the cost of 10 lacs shall be increased by the cost of inflation index of government.

    Thanks and regards
    Mohit Gupta
    9871084875





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