Nuedge Corporate

How to save tax on the sale of a house Several provisions in the Income Tax Act, enable you to reduce or avoid paying tax on the gains accrued from the sale of a house ------------------------------------------------------------------------------------------------------------------------ Is this a Long Term Capital Asset or Short Term? When you make a gain on the sale of a house, you have to pay a tax on your gains. If three years have passed, between the date of purchase and sale of an asset, then, your gain from the sale will be classified as a long-term capital gain. If three years have not elapsed, your gain will be treated as a short-term capital gain. Long-term capital gain is taxed at the rate of 20%, while short-term capital gain is taxed at your marginal tax rate. What are the Tax Rates STCG are included in your taxable income and taxed at applicable tax rates basis your slab. LTCG are taxed at 20% with indexation     Indexatio

What is u/s 80c of Income Tax Act? The most widely used option to save income tax is section 80C of the Income Tax Act. As per this section, if an individual or Hindu Undivided Families (HUFs) invests in or spends on specified avenues then up to Rs 1.5 lakh, as per the current laws, of this investment/expenditure can be claimed as a deduction from gross total income before calculating tax payable on it in a financial year. The deduction can be claimed only from income in the financial year in which the specified investment/expend  By claiming this deduction, a person can reduce his/her gross taxable income and thereby the total tax payable by him/her. For example, if your gross total earnings say, for a financial year is Rs 6.5 lakh and if you invest Rs 1.5 lakh in notified schemes which allows you to claim this tax benefit, then your net taxable income will come down to Rs 5 lakh and you would have to pay tax on this amount. Apart from investment in specified avenues, certa