Capital gains on sale of immovable property

Holding period and computation

Immovable property held for more than twenty-four months is generally a long-term capital asset. Gains are computed after indexed cost (where available) and transfer expenses. If the stamp-duty value exceeds the stated sale price, Section 50C may substitute the higher figure.

Property received by inheritance or gift may carry the previous owner’s cost and holding period — a point that is often missed and that can change the tax result materially.

Exemption routes

• Section 54 — investment in another residential house (conditions and timelines apply)
• Section 54F — investment of net consideration from a non-residential long-term asset
• Section 54EC — specified bonds within six months, subject to lock-in and caps