{"id":7659,"date":"2025-07-11T09:41:56","date_gmt":"2025-07-11T09:41:56","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&p=7659"},"modified":"2025-07-11T09:41:57","modified_gmt":"2025-07-11T09:41:57","slug":"capital-gains-tax-on-property","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/capital-gains-tax-on-property\/","title":{"rendered":"Capital Gains Tax on Property"},"content":{"rendered":"

When you sell a property<\/strong>—like a house, land, or building—you may earn a profit<\/strong>.
This profit is called a Capital Gain<\/a><\/strong>, and it can be tax<\/a>able<\/strong> under the Income Tax Act<\/a>.<\/p>\n\n\n\n

But the good news is: you can save this tax<\/strong> if you use the right exemptions.<\/p>\n\n\n\n

What is Capital Gains Tax on Property<\/a>?<\/strong><\/h2>\n\n\n\n

Capital gain<\/strong> is the profit<\/strong> you make when you sell your property for more than what you paid.<\/p>\n\n\n\n

There are 2 types:<\/p>\n\n\n\n

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  1. Short-Term Capital Gain (STCG)<\/strong> – If property is sold within 2 years<\/li>\n\n\n\n
  2. Long-Term Capital Gain (LTCG)<\/strong> – If property is sold after 2 years<\/strong><\/li>\n<\/ol>\n\n\n\n

    Capital Gains Tax<\/a> Rates on Property<\/strong><\/h2>\n\n\n\n
    Type<\/th>Holding Period<\/th>Tax Rate<\/th><\/tr><\/thead>
    STCG<\/td>Less than 2 years<\/td>As per your income slab<\/td><\/tr>
    LTCG<\/td>More than 2 years<\/td>20% (with indexation<\/a> benefit)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Capital Gains Formula<\/strong><\/h2>\n\n\n\n

    LTCG = Sale Price – Index<\/a>ed Purchase Price – Expenses<\/a><\/strong><\/p>\n\n\n\n

    Indexed Purchase Price<\/strong> means your original cost is adjusted for inflation<\/a> using the Cost Inflation Index<\/a> (CII)<\/strong>.<\/p>\n\n\n\n

    Example:<\/strong><\/h3>\n\n\n\n