New Delhi, July 9 -- The profit on sale of a plot of land is treated as long term capital gains if the plot of land has been held for more than 24 months, else the gains are treated as short term capital gains. The short term capital gains are added to your regular income and taxed at your slab rates. The long term capital gains are taxed at 12.50%. The resident individual who had acquired the plot of land prior to 23rd July 2024 has the option to pay tax either on unindexed long term capital gains at 12.50% or at 20% on indexed long term capital gains.

You can save tax on capital gains made on sale of the plot only if the capital gains are long term in nature. No exemption is available in respect of short term capital gains.

In case yo...