Add Capital Gains from Sale of House Property
Capital gains arise when you sell a house property for more than its indexed purchase cost. The profit—or loss—from this transaction is treated as a capital gain or capital loss, and is taxable under the Income Tax Act.
1. Add Real Estate Capital Gains
- Navigate to File > Capital Gains
- Choose Real Estate > Add Real Estate Gains and click on Proceed
- Fill in the Property Details:
- Full address of the property
- Type of asset (e.g., residential property, commercial property, non-agricultural land, urban agricultural land)
- Name of the property
- Purchase price and sale price
- Purchase date and sale date
- Transfer-related expenses (brokerage, legal fees, etc.)
- Enter Buyer’s Details:
- Name of the buyer
- PAN of the buyer
- Percentage of ownership (if property was jointly owned)
- Click on Save once all details are filled
Important Note: The system will automatically compute your capital gains using the Cost Inflation Index (CII) issued by the Government of India.
2. Add Cost of Improvement
If you incurred capital expenses for renovations or structural changes to the property, you can add them to reduce your taxable gains.
- Open the previously added real estate entry
- Go to Property Details > Cost of Improvement
- For each improvement:
- Select the financial year when the expense was incurred
- Enter the amount spent
- Click Add to enter multiple improvements, if applicable
- Save the details to update your capital gains calculation
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