The profit on selling a property: sale price minus the cost of buying it, improvements and selling expenses. It is taxed as short-term or long-term depending on how long you held it.
How it works and what to check
Land or a building held for more than 24 months gives a long-term gain; held for 24 months or less, a short-term gain taxed at your slab rate. Long-term gains on property sold on or after 23 July 2024 are taxed at 12.5% without indexation; a resident individual or HUF selling property bought before that date can choose 20% with indexation if that is lower.
Reinvesting the gain in another house or in specified bonds within the time limits can exempt some or all of it. These rules were carried into the Income-tax Act, 2025, which has applied from 1 April 2026; check the current position with a tax adviser before you sell.