Latest Answer: Hi Bharat..it is a short term capital gain as you have not completed 3 yrs from the day you took possession. It is fully taxable if you sell that flat within 3 yrs from the possession date.
Q:Hi, I had bought a property in 1998 for Rs 1 lakh and now I wish to sell it for 50 lakh. I’m looking to buy two properties esch of 5 lakh one in hebbal and the other near electronic city. Kindly, suggest if my capital gains by selling my existing property will be included in the purchase of the new properties? What are the ways to minimize the capital gains?
Latest Answer: You can avail tax exemption on sale of a house if the profit is invested in either bonds of the National Highways Authority of India and Rural Electrification Corporation Limited for three years. The investment has to take place within six months of realizing the profit. However, investment is allowed only up to Rs 50 lakh in a financial year. Usually the interest on these bonds is around 5-5.5%. Hence, few factors should always be kept in mind when you are going to buy or sell a property. While making profit by selling a house, you need to know which tax bracket you fall under when calculating capital gains tax and also whether or not indexation can save tax payable for you.
