When are capital gains applicable and how can capital gain tax be saved/reduced?

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.