Selling Your Home? Master Tax Rules & Save Big on Capital Gains!

• Tax on property sale depends on holding period: Long-term (over 24 months) or Short-term (under 24 months) capital gains.
• Long-term capital gains (LTCG) are taxed at 12.50% (or 20% on indexed gains for properties before July 23, 2024), while Short-term capital gains (STCG) are taxed at slab rates.
• Save LTCG tax by reinvesting in another residential house: purchase ready-to-move-in within 2 years, or complete construction within 3 years.
• LTCG tax can also be saved by investing up to ₹50 lakh in specific bonds (NHAI, REC, etc.) within 6 months, with a 5-year lock-in.
• Ensure new house isn't sold within 36 months to avoid withdrawal of claimed exemption; deposit unutilized funds into Capital Gains Account Scheme.

Why It Matters: Understand property sale tax rules and utilize reinvestment or bond options to significantly reduce your tax burden.