The profits made from selling a property are subject to capital gains tax. The sale price of the asset must be determined, and the cost of acquisition and any selling-related costs must be subtracted before calculating the capital gains tax. The capital gains are calculated as the sum. The duration for which the asset is held defines the type of capital gain, with long-term capital gains subject to a lower tax rate than short-term capital gains. Property sold after two years is subject to a 20% long-term capital gains tax with indexation benefits. Short-term capital gains, on the other hand, are taxed according to the taxpayers income tax bracket.
