Selling a property? Here’s all you need to know about capital gains tax rules

Key Takeaways

• AI-generated image No indexation but a lowered tax rate The old system of 20% tax with indexation, or The new system of 12.5% tax without indexation, How does it affect you?
• Exceptions and available options Selling a property can leave you with a sizable profit, but it can also rake up significant taxes.
• The amount of tax you pay depends on how long you have owned the property and the capital gains tax rules introduced in the Union Budget 2024 and made effective from July 23, 2024.
• The changes have altered how long-term gains from property sales are calculated and taxed.Like before, a property sold within 24 months of purchase is treated as a short-term capital gain (STCG), while a property sold after 24 months is treated as a long-term capital gain (LTCG).
• What has changed is the way long-term gains are taxed.Earlier, long-term capital gains from property sales were taxed at 20% with indexation benefit.