This question is in the mind of almost every property owners whether there will be any tax after selling of their property and how much is the tax and how to save it. The answer is yes, there is a tax which has to be paid after selling of property. It is called Capital Gain Tax. Here we will discuss about the tax, how is it calculated and how to save the tax in a simplified manner.
In very simple words, capital gain is the profit that a person realizes after he/she sells an asset for a higher price than purchased price. The tax on the profit is called Capital Gain Tax. Asset can be in terms of shares, raw materials, gold bonds etc. however, we are going to discuss here only immovable properties or real estates.
What is Capital Gain Tax?
Capital Gain is classified as below –
In this context, we should mention that, in the current budget session, an amendment has been proposed by the Government to reduce the long term capital gain period from 36 months to 24 months.