CAPITAL GAIN ON DISPOSAL OF IMMOVABLE PROPERTY – Section 37(1A)
Tax rates on capital gain on disposal of immovable property under Section 37(1A) are to be as follows:
Holding Period | Rate of Tax | ||
Open Plots | Constructed Property | Flats | |
Where the holding period does not exceed one year | 15% | 15% | 15% |
Where the holding period exceeds one year but does not exceed two years | 12.5% | 10% | 7.5% |
Where the holding period exceeds two years but does not exceed three years | 10% | 7.5% | – |
Where the holding period exceeds three years but does not exceed four years | 7.5% | 5% | – |
Where the holding period exceeds four years but does not exceed five years | 5% | 0% | – |
Where the holding period exceeds five years but does not exceed six years | 2.5% | – | – |
Where the holding period exceeds six years | 0% | – | – |