Blog

4 WAYS TO SAVE CAPITAL GAIN TAX

 

By Manik Kalra


Capital Gain tax on sale of residential property can be saved in four ways:

  1. Purchase one new residential property in India.
  2. Invest in equity shares of new company.
  3. Invest in bonds (National Highway or Rural Electrification).
  4. Invest in bonds (Start-up India action plan).

Is this a Long Term Capital Asset or Short Term?

Property is a short term capital asset when held for 36 months or less. If held for more than 36 months it is considered a long term capital asset.

STCG are included in your taxable income and taxed at applicable tax rates basis on your slab.

LTCG are taxed at 20%.

 

 

Note: Following tax saving options are applicable for Long Term Capital Gain i.e. Residential property sold was held for 3 years or more.

 

Add on Services