Exemption is given to income earned through long-term capital gains if this income is used to purchase or construct a residential house.

Sale of Agricultural Land in rural areas is exempted from Capital Gains Tax

Selling capital assets to buy a house within 2 years of the sale or before 1 year of the sale, if the individual does not own another house property at that time, is exempted.

Capital Gains Tax (CGT) is the tax levied on income from the sale of capital assets like land, mutual funds, jewelry, buildings, vehicles, etc.

CGT rate on gains from sale of
– short-term capital asset is 15%,
– long-term capital asset is 20%,
– long-term equity shares is 10%.

Exemption is given to income earned through long-term capital gains if this income is used to purchase or construct a residential house.

Sale of Agricultural Land in rural areas is exempted from Capital Gains Tax.