Planning To Sell Your House? Few Tips!
Short-Term Gains Tax: If you sell the house within three years of taking possession, you could be liable to pay short-term capital gains
The provisions: The Income Tax Act contains specific provisions regarding tax on capital gains arising out of transfer of a house. What constitutes a sale and transfer has been specified under the Act
How is it calculated? Capital gains tax is computed on the indexed cost of the asset sold
How to avoid the tax? You should purchase a property a year before or should do so two years after the date on which the transfer took place
If Capital gains is greater than the cost of the house: Then the difference will be charged as income of the previous year