Tax on capital gain from property sell
Real estate property is a good market for investments. However, the income tax structure on the real estate transactions are sometimes confusing among the investors.
In income tax there are two types of tax rules: short term capital gain (STCG) and long term capital gain (LTCG).
If an investor sells any property within three years of buying the property, it comes under the STCG. And if the same property is being sold after three years of purchase, it comes under LTCG.
For STCG, the capital gain will come under direct tax slab while the entire amount of capital gain for LTCG will not come under income tax.
The capital gain for LTCG will be calculated by a cost inflation index number published by Reserve Bank of India (RBI) every year.
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Source : Money Control
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