Income Tax Implications of Property Sale in India: An In-Depth Guide

Selling property in India can trigger significant tax obligations, particularly in terms of capital gains tax. The nature of the capital gains tax (CGT) on property sales depends on several factors including the type of property, holding period, seller’s residential status, and eligibility for exemptions. Non-resident property owners also face distinct tax rules. With the complexity of tax laws surrounding property sales, understanding these intricacies is key for anyone looking to sell property in India, whether for personal or investment purposes. This guide will explain in simple terms the different components of tax law relating to property sales, from capital gains tax calculation to exemptions, Tax Deducted at Source (TDS), and special considerations for non-residents.