Accountant Clayton

 

 

For instance, if you bought a house/ land 20 years ago and you wish to sell it now, it can be expected to fetch significant appreciation to its purchase value. Accountant Clayton  This indicates that you have earned "Capital Gains" on your property and hence, are liable to pay tax on these gains. The rate at which your capital gains will be taxed depends on the tenure for which you held the property and will be accordingly classified as Short Term Capital Gain or Long Term Capital Gain.When you sell your property that is owned by you for more than three years, any gain arising from such sale will be considered as long term capital gain. Long term capital gain is calculated as the difference between net sales consideration and indexed cost of property.