Three ways to save tax after selling a house

Atin, 53, works as a branch manager with a private bank. He had invested in an under-construction house in 2014. Fortunately, its price skyrocketed, prompting Atin to sell the property for a taxable profit of Rs 35 lakh. He now wants to know how he can save taxes and whether he should use this money to invest in another house. The first two options Before we explore the two options, let us explain how Atin will be taxed. In his case, the taxable profit - which is Rs 35 lakh - is termed as capital gains, and any property sold after at least two years falls under long-term capital gains. Long-term capital gains are taxed at a flat rate of 20 per cent, which means Atin must pay a Rs 7 lakh tax. If you want to know how to calculate the taxable profit on selling your home, you can read this article. However, the income tax law allows claiming certain deductions to reduce tax liability. Here are the dominant options. Should Atin buy another house? Atin was fortunate to see his property prices rise in the last eight years. But this may not happen every time. A real estate investment is a speculative aff

This article was originally published on December 02, 2022.