Long-term capital gains are gains from the sale of property or land which was held for more than 36 months. I want you to know that the 20% rate is applicable to long-term capital gains (LTCG). I know this is a lot. So, let me tell you how to save long term capital gain tax.
Invest in residential propertyThis point is important to you if you want to know how to save LTCG on sale of property. To save taxes on LTCG, you can buy a new residential house property. Just keep these points in mind:
You can buy a home within 1 year before the date of transfer of land or 2 years after that
You must build a home within three years after the date of transfer
You must not own more than one residential home beside the new one on the date of transfer
Now you know how to save long term capital gain on property!
Capital Gain Account scheme
This scheme enables you to enjoy tax exemptions without buying a residential property. The government lets you withdraw the funds from this account only to buy plots and houses. However, if you withdraw funds for any other purpose, then you have to utilize funds within three years of withdrawal. Otherwise, the entire profit amount will be charged as per the applicable LTCG tax rates.
Invest in BondsIf you want to save on long-term capital gains tax, then you can transfer the total amount to get bonds issued by RECL and NHAI. You can find the list of these bonds on the Income Tax Department of India’s official website.
I hope I answered your question on how to save long term capital gain tax.
Read more:How to calculate long term capital gain on property?
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Authors Of The Question
How to save long term capital gain tax?
Kapil
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1 Answers
3 Year
2021-09-07T17:35:17+00:00 2021-09-08T18:09:14+00:00Comment
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