Navigating the intricacies of capital gains tax and other associated rules is crucial for efficient financial planning and tax law compliance, regardless of whether you have just sold property or are thinking about doing so. The most important thing you must know how do I work out capital gains tax on property. I have shared the tips below.
How does Capital Gain Work on Property?
Capital gains tax on property in India depends on how long you've owned the asset before selling. Here are some tips you must follow.
If you sell a property after holding it for more than 24 months, it qualifies as Long-Term Capital Gains (LTCG) taxed at 20% with indexation benefit.
Indexation adjusts your original purchase price for inflation using government-notified Cost Inflation Index (CII) numbers, effectively reducing your taxable profit.
The government offers several exemptions to reduce this tax burden. Under Section 54, you can reinvest LTCG in another residential property within specific timelines (1 year before or 2 years after sale, or 3 years for construction) to claim full exemption.
I hope you must understand how does capital gains tax work on property.
Get Assistance with Your Tax Payments & Assessment from Experts at NoBroker
Also check
How to Avoid Paying Capital Gains Tax on Inherited Property?
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
How does Capital Gains Tax Work on Property?
ravi
33 Views
1
6 months
2025-05-24T06:34:46+00:00 2025-05-24T06:34:48+00:00Comment
Share