Buy and then sell the home to save tax

If you buy a property and want to sell, so do not forget to think of capital gains tax.

There are several ways of dealing with capital gains and other taxes. Now let's see what that means.

Then you pay tax based on your tax bracket.

The applicable tax rate of 20 per cent after indexation. On long-term capital gains tax discounts are available. The way tax is:

• Within two years from the sales tax rebate if you buy one-get. The same amount invested in the new property is equal to the sum of the capital gains tax exemption is granted. If the balance is left on the Long-term capital gains tax.

• Rural Electrification Corporation or National highways Authority of India issued capital gain by investing in bonds within six months from the date of the capital gain.

Note that the limits for investment in any financial year is Rs 50 lakh. Institutions to issue bonds is the limit. The Bond first-come, first-served basis are issued.

Buy plot of building a house, you will get another year, but the construction work should be completed within three years of the sale.



Whatever benefit, the date of filing of returns of capital gains within the bank account deposit. With accumulated interest amount to be invested within two years of the date of sale.

This amount of Rs three million returns filed before capital gains will have to deposit savings account. Which will be invested on the capital gains tax is Rs 1,108,501. Tips

Maximum discount is dependent on capital gains from the sale.

Sales of new houses, old houses within a period of two years from the date of purchase.

Otherwise Before getting into capital gains tax exemption will be taxed. You will have to pay interest and penalty.