Hi,
The property owners in India have to pay capital tax gains when they are selling a residential property. This tax is levied as the owner of the property gets profited while selling his property. If you sell a property within three years of purchasing it will be considered as short term capital gains.
If you hold a property for more than 3 years it is considered long term capital gains and you will be taxed at 20 % after indexation.
But you can avoid paying taxes entirely if you purchase another house within 2 years or construct a house within 3 years. This can happen when you purchase a house a year before selling the house.
You can claim for tax exemption under Section 54 (EC) if you are willing to invest in long-term capital gains. In this case, you will need to invest in Government bonds such as National Highways Authority of India and Rural Electrification Corporation Limited within six months of selling the house. You can invest up to Rs. 50 lakhs if you invest in these bonds in a financial year. These investments could be redeemed only after 5 years and if you have invested before April 2018 you can redeem them within 3 years. You can invest in these bonds only against long term capital gains when you are selling immovable property.
I hope this was helpful.
Read more:
How To Get Property Tax Receipts Online?
I Wish To Know My Property Tax Ptin Number How?
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If u sell residential plot and buy flat is tax applicable for gain on sale of plot
Resident indian
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2021-11-25T10:13:13+00:00 2021-11-25T10:13:14+00:00Comment
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