Capital gain is the term that is used to define the monetary gains or profit made by selling a non inventory asset (an asset that has no fixed exchange value and depends on the condition of the economy). The gain is made when the sale price is greater than the purchase price. Capital gain tax is a tax levied on sale of assets like stocks, bonds, property, gold, silver etc.It may get onto your nerves when you have to pay so many different kinds of taxes and cannot even make a profit through a sale without having to give some amount of it to the government. But there are ways you can cut on the taxes and not exactly cheat the government. Here are some ways you can save on capital gains tax payable on the sale of property.But first, a brief introduction to how capital gains on the sale of property is taxed. If the property is held for longer than 36 months or three years such as an ancestral house, then the profit obtained by selling it is termed as a long term capital gain. A property that has been held for less than 3 years such as a house that has been bought for investment purpose and is now being sold, then the profit gained by selling such a house is termed as a short term capital gain. Long term gains are taxed at 20% and short term capital gains are taxed at the normal rate. This means long term capital gains are taxed at 20% on the amount of the gain whereas for short term capital gain the amount of taxation depends on which tax slab that individual falls.Means of saving on capital gain tax:Invest in Real Estate: This is possibly one of the easiest means of receiving tax exemption on capital gains. This is applicable only on long term capital gains. Tax exemption can be availed if a house is bought within two year of a house is constructed within the first three years of the capital gain being made with the money earned in the profit. This provision has been mentioned in section 54. In section 54 (F) another clause has been mentioned that can be used to evade taxes. If one owns one house only and invests the sale proceedings in buying a real estate property then that individual will be exempt from capital gains tax. However the real estate property has to be residential and cannot be a commercial property or a vacant plot.Indexation: Indexation is a means of paying lesser tax that the government almost puts into your hand. Indexation is the process of calculating the price of an asset on the basis of an inflation index. When a property price is recalculated in the manner then the price of the property is increased due to the inflation factor. As the difference between the sale price and the indexed price is lesser than the original price of the property and the sale price, hence though the gain made due to the sale remains substantial, the tax paid on capital gain is less. However indexation is only applicable to long term capital gain. So if you want to avail this means of tax exemption it is advisable to hold onto a property for more than three years before selling it.Invest: Tax exemption can also be received if the profit gained from the sale is invested in government bonds such as Rural Electrification Corporation Limited or the National Highways Authority of India for three years and this must be done within six months of selling the house. However investment is limited to Rs 50 lakh in one financial year.займ на карту без отказов круглосуточновзять кредит онлайн