Prajna Capital - An Investment Guide

This article explains how capital gains tax can be saved by depositing the amount in specified bank accounts Capital gains tax is levied on sale or transfer of a house. The capital gains tax is computed on the indexed cost of the house purchased, which is deducted from the consideration received. The indexed cost is computed according to the indexation rates notified by the Income Tax Department for each year. You can reduce the capital gains tax payable by complying with the provisions specified under the Act. The benefit is available only to individuals and a Hindu Undivided Family ( HUF ). No other category of assessees are eligible for this concession. The house may be self-occupied or rented out. It must be held for a period of more than 36 months before the date of sale or transfer. The asset transferred should include a building, or land appurtenant to it and a house. The income of the house should be chargeable to tax under the head 'Income from House Property'...