Capital Gains

Immovable properties i.e. plot of land, residential flats or house, commercial  properties etc. are treated as Capital Assets u/s 2(14) of the Income-tax Act, 1961 (‘the Act’) and accordingly gains arising from the transfer of immovable property is chargeable to income tax.

Further, it must be noted that immovable property which is classified as Rural Agricultural land as per the provisions of the Act, is not treated as Capital asset and accordingly gains arising from the transfer of same is not chargeable to tax.

The Capital gains are segregated into long term capital gains and short term capital gains in the following manner :-
                                   

Period of Holding of immovable property

Type of Gain arising on transfer

For less than or equal to 24 months

Short Term

For more than 24 months

Long Term


Updated as on 5.8.2022