Capital gains on selling property: every question, answered

For property sold after the 2024 change, the applicable rate/indexation route depends on the acquisition date and transition rules. Older residential property may have a grandfathered comparison or option in some cases, while newer transfers may follow the revised long-term capital gains rate without indexation. Compute both only where the law permits an option.

The holding period decides LTCG vs STCG, but property dates can be fact-sensitive. Agreement date, allotment date, possession date and registration date can matter differently depending on the facts and case law. Under-construction flats need special care before deciding the holding period.

For property sold after the 2024 change, the applicable rate/indexation route depends on the acquisition date and transition rules. Older residential property may have a grandfathered comparison or option in some cases, while newer transfers may follow the revised long-term capital gains rate without indexation. Compute both only where the law permits an option.

Reinvestment relief is available only when the section-specific conditions are met. Section 54, 54EC and 54F work differently on eligible asset, investment window, lock-in and amount of exemption. If the new asset is not purchased/constructed before the return due date, the Capital Gains Account Scheme may be needed.

Reinvestment relief is available only when the section-specific conditions are met. Section 54, 54EC and 54F work differently on eligible asset, investment window, lock-in and amount of exemption. If the new asset is not purchased/constructed before the return due date, the Capital Gains Account Scheme may be needed.

Property capital gains need a document-led computation. Start with sale deed, purchase deed, improvement invoices, loan/possession papers, TDS challans and reinvestment proofs, then apply the rate, indexation and exemption rules for that transfer year.

Reinvestment relief is available only when the section-specific conditions are met. Section 54, 54EC and 54F work differently on eligible asset, investment window, lock-in and amount of exemption. If the new asset is not purchased/constructed before the return due date, the Capital Gains Account Scheme may be needed.

For inherited or gifted property, the previous owner's cost and holding period usually flow through. You still need documents for acquisition cost, improvement cost, fair value where relevant, and the chain of ownership. Missing papers are common, so reconstruct evidence before filing.

Split the gain based on real ownership, not automatically 50:50. If the sale deed, funding and ownership records show equal ownership, equal split is natural. If one person funded more or ownership shares differ, the tax split should follow the evidence.

The holding period decides LTCG vs STCG, but property dates can be fact-sensitive. Agreement date, allotment date, possession date and registration date can matter differently depending on the facts and case law. Under-construction flats need special care before deciding the holding period.

Property capital gains need a document-led computation. Start with sale deed, purchase deed, improvement invoices, loan/possession papers, TDS challans and reinvestment proofs, then apply the rate, indexation and exemption rules for that transfer year.

Property-sale TDS depends heavily on whether the seller is resident or non-resident. Resident-seller cases commonly involve 1% TDS under Form 26QB above the threshold; NRI-seller cases fall under section 195 and can be much higher unless a lower-deduction certificate is obtained.

Property-sale TDS depends heavily on whether the seller is resident or non-resident. Resident-seller cases commonly involve 1% TDS under Form 26QB above the threshold; NRI-seller cases fall under section 195 and can be much higher unless a lower-deduction certificate is obtained.

Property-sale TDS depends heavily on whether the seller is resident or non-resident. Resident-seller cases commonly involve 1% TDS under Form 26QB above the threshold; NRI-seller cases fall under section 195 and can be much higher unless a lower-deduction certificate is obtained.