If i were to sell an residential property, what are the capital tax gain implications?



I have a residential property that i am planning to sell. I suppose there are tax implications, which i would like to understand.

If i were to sell an residential property, what are the capital tax gain implications?
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2 Replies to “If i were to sell an residential property, what are the capital tax gain implications?”

  1. go to your auditor. he shall help you out. there is some three year policy that a new property bought cannot be sold within three years or else it would be under capital tax. so a good auditor should be the best advisor.


  2. On sale of house property capital gain tax shall be applicable. If house is sold within 3 years of purchase then short term capital gain tax shall be applicable and if sold else then long term capital gain tax shall be applicable.under long term capital gain tax you will get the benefit of cost inflation index. I am assuming that LTCG are applicable.then LTCG=consideration received(net of any expenses incurred by you) – indexed cost of acquisition of house-indexed cost of any improvement of house.
    LTCG are taxable at flat 20% as per section 112 of IT act.there are some deductions are available on tax if you qualify for section 54.
    For more details take help of CA or an expert in this field. I hope i resolved your question to the extent.





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