The inheritor can use the long-term capital gain in investing in purchasing another house property within a year from the sale of such inherited property or construct a new house within a period of three years from the date of sale of such inherited property. Dec 30, 2019 · If sold within 2 years its SHORT Term Capital gains (or loss). Long Term capital gains from property is taxed at flat rate of 20% after taking indexation in account. There is education cess of 3% effectively taking tax to 20.6%. After April 1, 2018 the cess would increase to 4% taking the effective tax to 20.8%. A capital gain may either be short term, or long term, depending on the period for which the asset was held. If the inherited house is held for more than 24 months, it is treated as a long term asset.

Dec 30, 2019 · If sold within 2 years its SHORT Term Capital gains (or loss). Long Term capital gains from property is taxed at flat rate of 20% after taking indexation in account. There is education cess of 3% effectively taking tax to 20.6%. After April 1, 2018 the cess would increase to 4% taking the effective tax to 20.8%.