Category: Provision on tax on Capital Gains

The Income Tax Act contains specific provisions on tax of capital gains arising out of transfer of a house. Capital gain tax is leviable on sale or transfer of a house. What constitutes a sale and transfer has been specified under the Income Tax Act. The capital gains tax is computed on the indexed cost […]

A seller of property can reduce the capital gains tax by complying with the provisions specified under the Act. The benefit is available only to individuals and to a Hindu Undivided Family. No other category of assesses are eligible for the concessions.

The asset transferred should be a residential building including land attached to it. Further, any income from the house should be chargeable to tax under the head ‘Income from House Property’. Other types of properties are not eligible for this exemption. The capital gains should arise from the transfer of a long-term capital asset. The […]

In order to avoid being liable to pay capital gains tax, an assessee should have either purchased a house within one year of the sale or should do so within two years after the date on which the transfer took place, or construct a house within a period of three years after the date of […]