Property Transfer in India: Tax Implications

Ans: Capital gains tax is a tax levied on the profit or gain arising from the sale of a property.

Ans: Yes, there are certain exemptions available under the Income Tax Act, such as investing in another property or specific bonds within the prescribed time limits.

Ans: To transfer property to a family member tax-free in India, one can utilise exemptions such as gifting under specific circumstances or through inheritance, which typically does not incur taxation.

Ans: In property transfer, the buyer usually pays the transfer tax, while the seller may incur other taxes like capital gains tax based on the transaction's nature and regulations.

Ans: A capital gain from property is deemed long-term if the property is held for more than 24 months before its transfer, qualifying for different tax rates than short-term gains.