Real Estate is considered as one of the safe investment by Indian investors. Over the past few years, real estate investments witnessed a steady decline as capital values or either remained stagnant. To give a boost to the sector, the government has reduced the period after which a real estate holding will be considered a long-term asset, from 3 years to 2 years.
Current valuations in metros apart from the house & apartments for self-use, real estate investments don’t make economic sense. If you choose to reduce exposure to real estate, do pay attention to the tax rules that will apply. Here is a look at the taxes that apply to short-term and long-term gains for real estate asset class.
Short Term Capital Gain Tax - Slab Rate
Under long term capital gains & the tax rate is 20.8% with indexation benefits.
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