New Delhi, Jan. 5 -- Many people, especiallythose who do not file their income tax returns, are not aware that they have to pay tax in respect of profits made on the sale of a residential house. In certain circumstances, you can save these taxes. Let us discuss.

If the house is sold after 24 months' holding, the profits are treated as long-term capital gains. Long-term capital gains are computed by deducting the cost of the house from its net sale price. One has to pay tax at a flat rate of 12.50% on the capital gains so computed. If you are a resident individual or HUF, you have the option to either pay tax @ 12.50% on plain long-term capital gains or @ 20% on indexed long-term capital gains for a residential house bought before 23rd Ju...