Immovable property: Period for long-term gains cut to 2 years

By | February 2, 2017

“We also propose to make a number of changes in the capital gain taxation provisions in respect of land and building. The holding period for considering gain from immovable property to be long term is three years now. This is proposed to be reduced to two years. Also, the base year for indexation is proposed to be shifted from April 1, 1981, to April 1, 2001, for all classes of assets including immovable property. This move will significantly reduce the capital gain tax liability while encouraging the mobility of assets,” Jaitley said.

Long-term capital gains in the case of immovable assets are taxed at 20 per cent, while short-term capital gains are taxed at 30 per cent. Earlier, any capital gain on sale of a property within three years of purchase was taxed at 30 per cent, which will now reduce to 20 per cent if it is sold after two years.

Source: Indian Express