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  1. In India profit on sale of land and building is classified in two category
    1- Long Term Capital Gain – In this case property sold is owned by seller for more than 3 years
    2- Short Term Capital Gain- In this case property sold is owned by seller for less than 3 years
    In case of Long Term Capital Gain Tax is 20%
    In case of Short Term Capital Gain, flat rate of tax is not applied but this gain is added to your other source of income and according to income, tax slab is applied and tax calculated
    There are some avenues provided by law wherein you can invest to save tax on capital gain.

  2. If the property in question is held by you for more than 3 years, then the gains will be treated as Long Term Capital Gain (LTCG) and will be taxed at a flat rate of 20% plus 3% education cess (Effective rate: 20.6%).

    If the property is held by you for less than 3 years, then the gain (Short Term capital gain) will be treated like normal income and taxed at the normal slab rates. The maximum rate would be 30% plus 3% education cess.

    The slabs are:

    Individual Male (Below the Age 65 Years)

    Up to 1,60,000 NIL
    From 1,60,001 to 5,00,000 10%
    From 5,00,001 to 8,00,000 20%
    Above Than 8,00,000 30%

    Education Cess: 3% of the Income-tax.