Tax Payable When You Sell Your Property | English Subtitles

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Today we will talk about the taxes payable when you sell a property. There are two types of taxes, Capital Gain Tax and Advance tax or Withholding Tax.

1. Capital Gain Tax

To calculate the Capital gain tax, first, we need to determine the amount of gain.

• If the plot/property is sold within the 1st year of purchase,
100% of the capital gain will be added in the taxable amount.

• If the plot is sold within 2 to 8 years of purchase,
75% of the capital gain will be added in the taxable amount.

• If the constructed property is sold within 2 to 4 years of purchase,
75% of the capital gain will be added in the taxable amount.

• If plot/property is sold after 8 and 4 years respectively,
No capital gain tax will be charged.

Rates of Capital Gain Tax

 If the gain amount is up to Rs 5 million, the tax rate will be 5%.
 Between 5 to 10 Million, the tax rate will be 10%.
 Between 10 to 15 Million, the tax rate will be 15%.
 If the gain amount exceeds Rs 15 Million, 20% tax will be charged.

2. Advance Tax

• If the property is sold within 5 years of purchase,
The advance tax rate will be 1% of the sale value.

• If the property is sold after 5 years of purchase,
No advance tax will be charged.

The advance tax paid is adjustable i.e. it will be credited when you file your tax return.

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