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Property5 min read

Capital gains when you sell property

Holding period, improvements, and exemptions decide the final bill.

Property sold after prescribed holding periods may qualify for long-term capital gains treatment with indexation benefits on land/building in many cases — slabs and surcharge bite hard if you ignore purchase deed costs and approved improvement receipts.

Reinvestment options like another residential property or capital gains bonds have time-bound deposit rules; missing deadlines converts planning into cash payments plus interest penalties.

Joint sale proceeds need matching with ITR capital-gains schedules; TDS by buyers on high-value transactions affects cash flow even if refund is due later.

Inherited property has different cost acquisition rules — legal opinions pay for themselves before marketing the asset.

Model lawyer fees, brokerage, and vacancy periods into your net-of-tax outcome — headline sale prices mislead sellers every season.

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