Selling real estate is a big financial deal, and anyone involved in real estate transactions has to be aware of the tax ramifications under the Income-tax Act, 1961. If you are selling or planning to sale your property, you must know the tax on property sale for senior citizens. Usually, it is 12.5% without indexation benefit.
What is the Tax on Sale of Property for Senior Citizens?
When a senior (age 60+) sells property, the tax depends solely on how long they held it:
Short-Term Capital Gains (STCG): If the property was held for 24 months or less, the gains are added to their annual income and taxed per their income slab (up to 30%).
Long-Term Capital Gains (LTCG): For properties held over 24 months, gains are taxed at a flat 20% with indexation, or a reduced 12.5% without indexation, depending on the property's acquisition date.
Senior citizens do, however, benefit from higher basic exemption limits under the income tax regime:
Individuals aged 60 to 80 have a Rs 3 lakh exemption,
Super seniors (80+) have Rs 5 lakh.
These exemptions apply to total taxable income, including capital gains. Thus, a senior earning capital gains of Rs 2 lakh within the Rs 3 to 5 lakh bracket may owe no tax. To reduce LTCG, seniors can opt for exemptions under Sections 54, 54EC, and 54F.
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How much Tax on Property Sale for Senior Citizens Need to Pay?
ashish
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2025-06-17T14:59:49+00:00 2025-06-17T14:59:50+00:00Comment
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