How much tax do I have to pay if I sell my house in India?

1. The property should be in India.
2. The seller should not own more than one property (other than the new one).
3. The seller should purchase a house before 1 year of selling the plot or within 2 years after the sale of the land. In the case of construction, a 3-year time is given.

Does an 80 year old have to pay capital gains tax?

The Bottom Line. The IRS allows no specific tax exemptions for senior citizens, either when it comes to income or capital gains. The closest you can come is a back-end tax-advantaged retirement account like a Roth IRA which allows you to withdraw money without paying taxes.

How can I avoid capital gains in India?

How much is capital gains tax on selling property in India?

Long term capital gains are taxed at 20%. TDS deductible- A buyer is liable to deduct 20% tax deductible at source (TDS), which is increased to 30% in case of long term capital gain. An NRI can be exempt from paying the capital gains tax under Section 54. The exemption is only available if its long term capital gain.

What is the capital gain tax on sale of immovable property in India?

As per Section 112 of the Income Tax Act, LTCG on the sale of immovable property in India is taxable at 20% with an indexation benefit. To take the indexation benefit, the taxpayer can calculate the indexed cost of the acquisition using Cost Inflation Index i.e. CII to compute the long term capital gain.

What is the tax rate for long term capital gains in India?

LTCG is 10% for gains in stocks and equity mutual funds. It is 20% for gains in real estate, debt funds and other assets along with the benefit of indexation. Assets hold before the specified holding periods are subject to Short Term Capital Gains Tax (STCG). This is generally imposed at slab rate.

How do I avoid capital gains tax?

How are capital gains calculated on the sale of a home?

Subtract your basis (what you paid) from the realized amount (how much you sold it for) to determine the difference. If you sold your assets for more than you paid, you have a capital gain.

How is capital gains tax calculated?

Taxes known as capital gains are levied on earnings made from the sale of assets like stocks or real estate. Based on the holding term and the taxpayer's income level, the tax is computed using the difference between the asset's sale price and its acquisition price, and it is subject to different rates.

What happens if I don't show capital gains tax in India?

Non-declaration of such income can get you into trouble as taxmen will have complete access to any capital gains you have made.

Can renovation costs be deducted from capital gains?

Deducting Home Improvements From Home Sale Profit

If you make substantial physical improvements to your home—even if you did them years before you started actively preparing your home for sale—you can add the cost to its tax basis. This will reduce the amount of any taxable profit from the sale.

What is the tax on long term capital gains on shares?

The Long-term capital gains (LTCG) over Rs 1 lakh on listed equity shares per financial year is taxable at the rate of 10% without the benefit of indexation.

What is the difference between short term capital gain and long term capital gain?

The holding period of financial assets is less than 1 year in case of short-term capital gain. On the other hand, it is over 1 year in case of long-term capital gains.

What is the capital gains account scheme?

What is the Capital Gains Account Scheme? Introduced in 1988, the Capital Gains Account Scheme allows individuals to park their capital gains until the point when they can be reinvested in assets specified in Sections 54 and 54F of the Income Tax Act, 1961, protecting their long-term capital gains.

What is the tax rate for short term capital gains?

If the conditions of section 111A are satisfied then the STCG is termed as STCG covered under section 111A. Such gain is charged to tax at 15% (plus surcharge and cess as applicable).

What is a capital gain bond?

Capital Gain Bonds are also known as 54EC bonds which allow an assessee/investor to save income tax on long-term capital gain by investing the gains. The investment into these bonds has to be made within 6 months from the date of long-term capital gain.

Does India have capital gains tax for foreigners?

Long-term capital gains arising to a non-resident (not being a company) or a foreign company from transfer of unlisted securities, shares, debentures, etc. are taxable at 10% (plus surcharge and health and education cess) without any indexation benefit.

Who has to pay capital gains tax in India?

The profit that arises from the sale of the capital asset is taxed under the head of 'Income from Capital Gain'. The profit is earned by selling the capital asset at a higher price than what it was bought for. This tax does not apply to the inherited property, as there is only a transfer of ownership and no sale.

What is the 6 year rule for capital gains tax?

Here's how it works: Taxpayers can claim a full capital gains tax exemption for their principal place of residence (PPOR). They also can claim this exemption for up to six years if they moved out of their PPOR and then rented it out.

What is the age that you don't have to pay capital gains tax?

The Internal Revenue Service calculates capital gains taxes based on the profits you made from selling any assets. Current tax law doesn't take age into account when determining tax liability. People over the age of 65 receive no capital gains tax breaks.

What happens if you can't afford capital gains tax?

If you can't pay, the tax agency (IRS or FTB) will permit you to file for an installment payment plan. The ease with which you can arrange such a plan will depend on your particular circumstances, though it will be generally easier if you owe less than $50,000 based on some recent changes to IRS' program.