For Sale of properties in India how capital gains tax is ascertained?

Q: How capital gains tax is ascertained and what are rules or conditions for their exemption?

salma, Ahmedabad

17th May 2012

Property Selling in Bangalore

capital gains on selling an old flat

selling

capital gains tax

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Yes, Capital gain tax is always tax on profit you made by selling your property and you are liable for Capital gain tax, if you sell a residential property (after 3 years from date of purchase) and reinvest the proceeds into another residential property (within 2 years from date of sale), capital gains tax will be exempted. Thank you

mukund,

18th May 2012

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Hi Salma,

I am also often confused with long-term and short-term capital gain tax in India. I heard that the difference between short term and long term is 3 yrs. If you sell property at more than cost of purchase within 3 yrs of purchase you will be liable for short term capital gain and after 3 years from the date of purchase, you will be liable for long term capital.

sujatha,

18th May 2012

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