Exemptions and Savings
You can claim exemptions under certain conditions:
- Invest in another residential property in India: Reinvest the capital gains within 1 year before, 2 years after, or 3 years from the sale to claim full exemption (Section 54).
- Invest in specified bonds: Invest in Capital Gains Savings Bonds (CGAS) within 6 months of the sale for a partial exemption (Section 54GB).
- One-time lifetime exemption: Claim up to Rs. 2 crore exemption on LTCG from the sale of one residential property in your lifetime (Section 54F).
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).