Capital Gains Tax on Property: Tax Calculation Steps & Formula

Ans: Capital gains on property sales are subject to 20% tax plus a 3% cess.

Ans: Selling an inherited property incurs capital gains tax, calculated based on the previous owner's indexed cost.

Ans: If you sell a property after 2 years, you can get some tax relief on the profit (capital gain) if you buy another house. For long-term capital gains, you can also save taxes by investing in special bonds, up to ₹50 lakh.

Ans: You can avoid capital gains tax by buying a new house with the profit you make or investing in bonds like NHAI or REC bonds. If you follow the rules, you can reduce or avoid the tax.

Ans: If you sell a property within 2 years, you pay 30% tax on the profit. If you sell it after 2 years, the tax is 20%, but you can use special rules to reduce it, like buying another property or investing in bonds.

Ans: The capital gains tax for selling property is 20% if you hold the property for more than 2 years. If you sell it within 2 years, the tax is 30% on the profit you make. You can get some exemptions if you reinvest in a new property.