The capital gains tax is a tax levied on the profit made on the sale of a
non-commercialized property investment, such as land or a house. Capital gains
taxes are only levied after the sale of a home or land.
The budget
2079/80 presented by the government in the parliament has increased the
capital gains tax on real estate transactions. According to the new provision,
when selling a house or land owned for less than five years, one will now have
to pay 7.5 percent capital gains tax on the profit. Earlier, such tax was 5
percent. The price of real estate seems to be rising sharply .
Similarly,
when selling a house or land owned for more than 5 years, 5 percent capital
tax will have to be paid. Earlier, such tax was only 2.5 percent.
Capital
gains tax is levied on houses and land bought and sold for more than Rs. 1
million ( Rs 10 lakh ) and capital gains tax on house and land is to be paid
at the time of transfer of name. The sale price and profit of any house or
land can be self-declared. However, the declared price should not be less than
the assessment amount fixed by the government.
