Points to Remember

What is Tax?

Taxes are payments made to the government to fund public services and infrastructure like roads, schools, and healthcare. They can be direct, like the income tax you pay on your salary, or indirect, like the sales tax you pay on purchases. Understanding different types of taxes is crucial for responsible financial planning....

What is Capital Gain?

A capital gain is the profit you make when you sell an asset, like your house, for more than you bought it for. It’s essentially the increase in value over time. This increase is subject to Capital Gains Tax (CGT) in India when you sell your house....

What is Capital Gains Tax (CGT)?

CGT is a tax levied on the profit you earn from selling an asset like your house. It’s calculated by subtracting the purchase price from the selling price. This difference, if positive, is your capital gain, and that’s what gets taxed. Capital Gains Tax is a Direct tax....

Do I have to Pay Capital Gains Tax?

It depends! Here’s the key factor: Holding Period....

Exemptions and Savings

You can claim exemptions under certain conditions:...

Additional Taxes

TDS (Tax Deducted at Source): The buyer might deduct 20% TDS on the sale value. You can claim a refund if your final tax liability is lower. Stamp duty and registration charges: These vary by state and are usually paid by the buyer, but it’s good to be aware....

Points to Remember

Consult a tax advisor: Every situation is unique. Seek personalized guidance from a tax professional to ensure you’re on the right track. Document everything: Keep all relevant documents handy, like purchase agreements, renovation receipts, and property tax records. File on time: Avoid penalties by filing your income tax return accurately and on time. Read these articles on “Filing of ITR” and “Documents required to file ITR” for guidance....