{"id":3885,"date":"2021-11-08T05:51:54","date_gmt":"2021-11-08T05:51:54","guid":{"rendered":"https:\/\/www.omaxe.com\/blog\/?p=3885"},"modified":"2025-01-10T15:52:38","modified_gmt":"2025-01-10T10:22:38","slug":"an-easy-guide-to-calculating-capital-gains-tax-on-property-in-india","status":"publish","type":"post","link":"https:\/\/www.omaxe.com\/blog\/an-easy-guide-to-calculating-capital-gains-tax-on-property-in-india\/","title":{"rendered":"An Easy Guide to Calculating Capital Gains Tax on Property in India"},"content":{"rendered":"\n

If you\u2019re planning to sell your property in India, you must know everything about Capital Gains Tax. Capital Gains are profits earned through sales of capital assets, and you are supposed to pay tax on it while selling a property.<\/p>\n\n\n\n

If this is your first time hearing about it, don\u2019t worry. This article will guide you through calculating capital gains tax on any property in India. Let us get started!<\/p>\n\n\n\n

Capital Gains Tax in India: An Overview<\/h2>\n\n\n\n

According to the Income Tax Act, all the gains and losses acquired through the sale of capital assets are liable for taxation. That is because any profit that you earn from such a sale falls under the category of income. Therefore, you will have to pay tax on it.<\/p>\n\n\n\n

A capital asset can be a house, land, stocks, bonds, etc. As per regulations, the tax paid on these is known as the Capital Gains Tax. The tax amount must be paid in the financial year in which the transfer of the capital assets takes place.<\/p>\n\n\n\n

One must note that these tax laws are not applicable when you inherit a property. That is because there is only a transfer of ownership in such a case and not a sale. Furthermore, this tax does not apply to assets received as gifts or through a will.<\/p>\n\n\n\n

What are the Types of Capital Assets?<\/h2>\n\n\n\n

Calculation of capital gains taxes depends upon the type of capital gained. So, let\u2019s take a look at its types:<\/p>\n\n\n\n

1. LTCG or Long-Term Capital Gains Tax: <\/strong>An asset is a long-term capital asset if held for more than 24 months. While calculation these taxes, you should also consider factors such as inflation.<\/p>\n\n\n\n

2. STCG or Short-Term Capital Gains Tax: <\/strong>An asset held for 24 months or less is considered a short-term capital asset. Short-term gains are calculated by adding the total income to the Income Tax based on the seller\u2019s tax bracket. <\/p>\n\n\n\n

Calculating Capital Gains<\/h2>\n\n\n\n

You will need to gather the following information to calculate capital gains tax. With adequate knowledge, you can do the calculation using an online calculator.<\/p>\n\n\n\n