Capital gains on immoveable property-capital gain on plots Section 37
The Finance Act has approved a unanimous treatment for taxability of capital gain on immovable property irrespective of open plot or constructed property. Now both kind of immovable property (plot and constructed property) shall be taxed in same manner.
Capital gain on disposal of such property with holding period of more than 4 years shall be exempt from tax. Furthermore, the exemption limits based on holding period of property are as under:
|Property holding period (Plot and constructed both) Reduction in gain|
|Holding period up to one year||0%|
|Exceeds one year but does not exceed two years||25%|
|Exceeds two years but does not exceed three years||50%|
|Exceeds three years but does not exceed four years||75%|