Do I have to Pay Capital Gains Tax?
It depends! Here’s the key factor: Holding Period.
- Long-term capital gain (LTCG): If you hold the property for more than 24 months, you pay a flat 20% tax on the indexed cost of acquisition.
- Short-term capital gain (STCG): If you held the property for 24 months or less, the gain is added to your income and taxed according to your income tax slab rate, which could be higher than 20%.
Will I Have to Pay Tax if I Sell My House?
Selling your house can be a big decision, and understanding the tax implications is crucial before you proceed. In India, yes, you are likely to pay tax on the profit you make when selling your house. This tax is called Capital Gains Tax (CGT).