I sold a house property and brought another one: Can I get some relief in Income Tax

I sold a house property and brought another one: Can I get some relief in Income Tax

Have you bought a property and are thinking of selling it? Many individuals often get confused about whether capital gains tax is levied on the sale of property or not. Capital Gains are the profit made after selling a capital asset whose value has increased over the holding period. In other words, it is the increase in the value of a capital asset over its original purchase price and is realised when the asset is sold.

Capital gains are of two types: Short-Term Capital Gains (STCG) and Long-Term Capital Gains (LTCG). STCG arise when the asset is sold within a short-term period, usually up to 48 months. On the other hand, LTCG arise when you sell an asset after a period of 48 months.

When You Sell a Property, you may be required to pay capital gain tax; however, the Income Tax Act offers some relief under Section 54. Let us understand the Capital gains exemption under Section 54.