Sorry, you cannot vote on the same answer more than once.
Property is considered a short-term capital asset when held for up to 3 years (i.e. 36 months or less). If held for more than 3 years, it is considered a long-term capital asset. So tax implications depend on the duration for which you own an asset. Let me tell you that how to save tax on sale of property.
How to save tax after selling property
Set Off Every Capital Loss
It allows you to set off every capital profit or gain against the capital losses you incurred before. It is analogous to the same year adjustment of capital gains and capital loss. I want you to know that you can set off a long-term capital loss against the long-term capital gain along with the condition to carry forward every capital loss for eight consequent years. Besides this, you are required to file the income tax return before your income tax return filing closing date to carry forward all your capital loss.
Invest in Capital Gains Account Scheme (CGAS)
The CGAS scheme offers a huge relief to the taxpayers. You can invest in this scheme for 3 years, and during this period, you can use the capital gains for purchasing or constructing a residential home on your property. The deposit in the CGAS account must be made before registering or filing an income tax return, and then this investment in the CGAS must be mentioned in the income tax return. This is how to save on taxes when selling a house.
Invest in Bonds
Investment in some financial assets allows you to save your laboriously earned capital gains as these LTCG are exempted under the Indian Income Tax Act, 1961 (Section 54EC). You are required to invest the sum earned in bonds within six months of the transfer of the sum and realization of gains if you want to get this tax exemption on your capital gains. Plus, you have to invest funds in these bonds for a minimum of 3 years as a lock-in period.
I hope you like my answer on how to save tax from sale of property.
Read more:
How to save tax on sale of agricultural land
Is basic exemption limit available for long term capital gain?
How to calculate long term capital gain on property?
Your Feedback Matters! How was this Answer?
Thanks ,We got your reaction
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & DeliveryIntercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Related Questions
Most Viewed Questions
How to calculate home loan EMI?What is MOD Charges for Home Loan?What is part period interest in SBI home loan?How to Avoid Part Period Interest in SBI Home Loan?Last 10 Years Home Loan Interest Rates in India?How to check APF number online?How to Close SBI Home Loan?How to Do Prepayment of SBI Home Loan?How to Withdraw PF for House Construction?How to Write Home Loan Request Letter to Bank Manager?See All
How to Change Email ID in PAN Card?How Much Money Can Be Transferred Through YONO SBI?What is Cooling Period in SBI YONO?How to Increase Transfer Limit in SBI YONO?How to Check Personal Loan Eligibility in SBI Yono App?How to Add Beneficiary in SBI YONO App?How to Transfer Money From YONO SBI?How to Pay Loan Amount in YONO SBI?How to Preclose ICICI Personal Loan?How to Get NOC from HDFC Bank for Personal Loan?See All
How to Download SBI Bank Statement?How to Check Which Number is Linked with Bank Account?Where is CIF Number in Central Bank Passbook?How to Know Customer ID of IPPB ?How to Activate Auto Sweep Facility in SBI Online?How to Deactivate Autopay in HDFC Netbanking?How to write application to bank manager for refund money?How to Change Mobile Number in BOB Bank Account Online?How to withdraw pension contribution in EPF?How to Stop ECS in HDFC bank?See All
Recently Published Questions
How to apply home loan in sbi?How to Pay Indiabulls Home Loan EMI Online?What is EMI for 8 Lakh Home Loan?What is the difference between plot loan and home loan?What is the Home Loan Interest Rate of Dena Bank?What is Capri Home Loan Interest Rate?What is PNB Plot Loan Interest Rate?What are the documents to be collected from builder on loan property?How to calculate home loan eligibility in HDFC ?How much home loan can I get on 55000 salary?See All
What is Federal Bank BYOM Personal Loan Interest Rate?Can a 19 Year Old Get a Loan?What is Minimum Salary for Personal Loan in HDFC Bank?What are the Documents Required for Bank of Baroda Personal Loan?What is Canara Bank Personal Loan Eligibility?What does collateral loan mean?Yes Bank Personal Loan Documents Required?What is CRGB Personal Loan Interest Rate?Can I Close Personal Loan Before 1 Year?Can a Pensioner be a Guarantor for a Loan?See All
How to activate Net Banking Karnataka Bank?How to Reverse a Bank Transaction ?If I transfer money from SBI account to ICICI account and money in SBI is in flexi FD will FD be broken to complete the transfer?How to Check My CIF Number?Who is eligible for MSME loan?What is interest subvention?How to Find CIF No.?What is FERA and FEMA?At What Time Kotak Bank Open?HDFC Bank Opens at What Time?See All
Authors Of The Question
Recently Answered Questions
Can I get Home Loan Without ITR?
What are the principles of home loan prepayment rules?
दिल्ली में घर कैसे खरीदे?
छत की मोटाई कितनी होनी चाहिए?
How to Remove Lien Amount in SBI?
How to know mu Kotak Mahindra account number?
टीवी किस दिशा में लगाना चाहिए?
How to check Eb bill status?
Alternative documents for address proof of deceased
How to recharge Excitel broadband?
How to save tax on sale of property?
Shweta
588 Views
1 Answers
3 Year
2021-10-04T17:17:41+00:00 2021-10-04T17:54:36+00:00Comment
Share