Capital Gain is applicable when:
- The sold property has been withheld by a person for a period of more than three years from the date of purchase/possession.
- The sale proceeds are invested in a residential property which is bought one year before the sale of property or two years after the sale of first property.
- The new property is bought after the sale of the first property.
- Capital Gains Tax can also be saved by investing the sale proceeds in Capital Gain Bonds.