CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
Short answerA house held over 24 months gives a long-term capital gain taxed at 12.5% (without indexation) for sales on or after 23 July 2024 — though resident individuals who bought before that date may opt for 20% with indexation. Held 24 months or less, it’s a short-term gain taxed at your slab rate. You can save the tax by reinvesting under Section 54/54EC.
The rate
LTCG 12.5% without indexation; resident sellers who acquired the property before 23 July 2024 may choose 20% with indexation. STCG (24 months or less) is taxed at slab rates. Confirm per the current Finance Act.
Saving the tax
Reinvest under Section 54 / 54EC to reduce or remove the gain.