How to save tax after selling a house
Mutual Fund Insight|February 2023
Atin has sold a house for a profit and wants to know how he can save tax. He has three options.
How to save tax after selling a house

Atin, 53, works as a branch manager with a private bank. He had invested in an under-construction house in 2014. Fortunately, its price skyrocketed, prompting Atin to sell the property for a profit of 35 lakh (post indexation; more on this below). He now wants to know how he can save the capitalgains tax.

Calculating tax on the sale of property

Before we explore the options, let us explain how Atin will be taxed. In his case, the profit is termed as capital gains and any property sold after at least two years falls under long-term capital gains. In the case of long-term capital gains, the cost of purchase of property is adjusted for inflation (this aspect is called indexation) and then taxed at a flat rate of 20 per cent. Thus, Atin will have to pay a tax of ₹7 lakh on his post-indexation profit of 35 lakh.

If a property is sold within two years, the profit (called short-term capital gain) is added to the total income and is taxed as per the applicable slab rate.

Saving the tax

Diese Geschichte stammt aus der February 2023-Ausgabe von Mutual Fund Insight.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

Diese Geschichte stammt aus der February 2023-Ausgabe von Mutual Fund Insight.

Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.

WEITERE ARTIKEL AUS MUTUAL FUND INSIGHTAlle anzeigen
International Mutual Funds Find Flavour But Lose Favour
Mutual Fund Insight

International Mutual Funds Find Flavour But Lose Favour

Despite stellar performance, these funds are cold-shouldered by investors

time-read
3 Minuten  |
September 2023
The Dose Makes The Poison
Mutual Fund Insight

The Dose Makes The Poison

Are your fund investments diversified? Or are they diworsified? Here’s the solution

time-read
5 Minuten  |
September 2023
'Since Sahi Hai drive launch, industry has grown over twofold'
Mutual Fund Insight

'Since Sahi Hai drive launch, industry has grown over twofold'

The AMC’s marketing and corporate communication head also lauds MFCentral and MF Utility

time-read
3 Minuten  |
September 2023
'Earlier, not many knew of mutual funds; now SIP is a verb'
Mutual Fund Insight

'Earlier, not many knew of mutual funds; now SIP is a verb'

The CMO also explains how 4G, fintechs have elevated mutual funds’ reach

time-read
4 Minuten  |
September 2023
'MFCentral is the most impressive of online platforms'
Mutual Fund Insight

'MFCentral is the most impressive of online platforms'

Shah says though passive funds are growing, there’s a long road ahead

time-read
3 Minuten  |
September 2023
'Fintechs are driving mass financial inclusion'
Mutual Fund Insight

'Fintechs are driving mass financial inclusion'

Shah also lauds the pace at which distributors have embraced technology

time-read
2 Minuten  |
September 2023
'A Maldives tour guide knew of the Mutual Fund Sahi Hai drive'
Mutual Fund Insight

'A Maldives tour guide knew of the Mutual Fund Sahi Hai drive'

Interaction with Edelweiss’s senior VP and head of products and marketing

time-read
3 Minuten  |
September 2023
'More distributors will come to MFCentral, MF Utility'
Mutual Fund Insight

'More distributors will come to MFCentral, MF Utility'

Goyal feels they can grow their business five times, 10 times with tech

time-read
3 Minuten  |
September 2023
'The size of passive funds has grown 36 per cent in a year'
Mutual Fund Insight

'The size of passive funds has grown 36 per cent in a year'

Parija explains how mutual funds have gained traction

time-read
5 Minuten  |
September 2023
Tomorrow, and tomorrow, and tomorrow...
Mutual Fund Insight

Tomorrow, and tomorrow, and tomorrow...

There are a total of about 1.1 lakh crores of rupees invested in India’s mutual funds and the number of investors is now about 12 crore

time-read
4 Minuten  |
September 2023