I am moving to the UK. I have two houses in India, which I plan to sell and build my own house in Yorkshire, UK. Will I get capital gains exemption if the house is completed before 3 years?
—Ajay Thomas
Sale of property situated in India will be taxable in the year of sale of property. Any immovable property held for a period of more than 24 months (earlier 36 months) is classified as long-term capital asset. In case of a long-term capital asset, taxable capital gain will be sale proceeds less indexed cost of acquisition (i.e., adjusted as per cost of inflation index or CII) less cost of improvement less cost of transfer. Long-term capital gain (LTCG) is taxable at 20% plus surcharge, if applicable and education cess. Short-term capital gains are calculated as the difference between the sale proceeds and the cost of acquisition (no indexation benefit is available) at respective slab rates.
