How to Save Capital Gains Tax On Residential Or Commercial Property Sales Are you questioning about the effect on your taxes after the federal government's recent modification in the capital gains tax routine genuine estate? Well, homeowners will now have the choice of two tax rates on long-lasting capital gains: a 12.5% rate without indexation or a 20% rate with indexation benefit. Selling a residential or commercial property can be a substantial financial deal, but it is essential to comprehend that it may likewise attract capital gains tax. However, there are numerous techniques you can employ to minimize the tax problem and conserve more of your hard-earned cash. In this short article, understand what is capital gains tax on residential or commercial property and explore different methods to minimize capital gains tax when selling a residential or commercial property. What is Capital Gains Tax on Residential Or Commercial Property? Capital gains tax on residential or commercial property is a tax imposed on the revenue earned from selling a possession. When you sell a residential or commercial property for more than its purchase cost, the difference between the selling cost and the expense of acquisition is thought about as capital gain. This gain goes through taxation according to the prevailing tax laws in India. Different Kinds Of Capital Gains There are two kinds of capital gains: short-term (STCG) and long-term (LTCG). The duration of holding identifies whether the gain is short-term or long-term. Short-term Capital Gains (STCG): Residential or commercial property offered within 2 years of acquisition is taxed at 20%. Long-term. Capital Gains (LTCG): Residential or commercial property sold after holding it for more than two years is dealt with as a long-lasting capital gain. Currently, LTCG on residential or commercial property sales is taxed at a flat rate of 20%, with indexation benefits readily available or at 12.