I sold a plot of land two months ago, which was purchased in 2013. How much can I save on tax with this sale?
Amit Ranjan, Lucknow
Your holding of the land was over three years, which means the gains will be taxed under the long-term capital head and will also be eligible for indexation benefit. The cost inflation index for 2017 is 272. The gain arising on transfer of a long-term capital asset is termed as long-term capital gain which is liable to tax at the rate of 20.60 per cent. You can avail the exemption benefit available under section 54EC subject to certain conditions.
