Selling a property or an asset which has high market value attracts taxes. According to the law, if you sell a property which has been in your name for more than 3 years, the profit gained from it will be termed as Long term capital gain, whereas a property sold within 3 years of holding period gives short term capital gain on sale. Many people have been asking these days, “How do I avoid capital gains tax when selling land?” I have a few tricks for you. Here is how to avoid capital gains tax.
How to avoid capital gains tax on property?The short term capital gains tax is unavoidable and the tax rate applicable is at the rate of 15%, whereas 20% rate is applicable on long term capital gain tax.
Here are a few tips on avoiding capital gains tax on property if you have LTCG
Purchase a house 1 year prior to the date of transfer of land or within 2 years of transfer
Complete the construction of a house within 3 years of the date of transfer
If you are not willing to invest in real estate in any way, then put your gains in capital gains account scheme
Purchase capital gains bonds and don’t sell them for at least 3 years.
In case you have earned short term capital gains, then you’ll have to pay the taxes as applicable unless you fall in the categories given below:
Indian Residents below 60 years of age: Tax exemption if capital gain is less than Rs. 2,50,000.
Indian Senior Citizens: Tax exemption if capital gain is less than Rs. 3,00,000
Indian Super senior citizens: Tax exemptions for gain of up to Rs. 5,00,000
NRI: Tax exemption if gains are less than Rs. 2,50,000.
These are the ways on how to avoid capital gains tax. Hope now you know the right way to seek relief from capital gains taxes.
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How do I avoid capital gains tax when selling land?
Anonymous
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3 Year
2021-07-28T19:02:35+00:00 2021-07-28T19:04:56+00:00Comment
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