Financial Services
Investing in real estate can lead to significant financial gains, but it also comes with tax implications, particularly capital gains tax on real estate. When a property is sold at a profit, the gain is classified as either short-term or long-term capital gains, depending on the holding period, and is taxed accordingly. Additionally, property owners must be aware of income tax on house property, which applies to rental income or deemed rental income from owned properties. The taxation framework is governed under the Property Act, which outlines legal provisions for ownership, transfer, and taxation of properties in India. Understanding these aspects helps property owners plan their finances efficiently while complying with tax laws.
