Tax Column

I own a residential house and would like to sell it. What should be the period of holding? Are two or three years enough to avail exemption from Capital Gain Tax? If you hold any immovable property, whether land and building or both, for more than two years, it becomes a long-term capital asset, which is eligible for exemption under Section 54 and 54 F of the Income Tax Act, subject to fulfilment of certain conditions, mentioned therein. If you don’t want to avail the benefit of exemption, then the entire long-term capital gain is subject to taxation at 20 per cent plus applicable surcharge.