How do you calculate long-term capital gains on sale of residential property?

In case of long-term capital gain, capital gain = final sale price – (transfer cost + indexed acquisition cost + indexed house improvement cost).

How can I save my long-term capital gains on the sale of my house?

Exemptions from your Gains that Save Tax Section 54F (applicable in case its a long term capital asset)

1. Purchase one house within 1 year before the date of transfer or 2 years after that.
2. Construct one house within 3 years after the date of transfer.
3. You do not sell this house within 3 years of purchase or construction.

How long do you have to hold property for long-term gain?

one year
General rule To yield long-term capital gain treatment, and thus take advantage of the preferential tax rates, an asset must be held for more than one year (at least a year and a day). The holding period begins the day after you buy an asset (or publicly traded security), and ends on the day you sell it.

What is the exemption limit for long term capital gain?

Adjustment of Long-term Capital Gain (Exemption) The exemption limit is Rs. 5,00,000 for resident individual of the age of 80 years or above. The exemption limit is Rs. 3,00,000 for resident individual of the age of 60 years or above but below 80 years.

How do you calculate long term gain on property?

Long-term capital gain = Final Sale Price – (indexed cost of acquisition + indexed cost of improvement + cost of transfer), where: Indexed cost of acquisition = cost of acquisition x cost inflation index of the year of transfer/cost inflation index of the year of acquisition.

Can you avoid capital gains if you reinvest in real estate?

Profit from the sale of real estate is considered a capital gain. You will also avoid taxation if you sell and reinvest immediately in a like-kind exchange.