As per a media report by Livemint, gains arising from the sale of a property held for more than 24 months, will be taxable as long-term capital gains (LTCG). The difference between the net sale proceeds and the indexed cost of acquisition and improvement of the property is taxable as LTCG at the rate of 20.60% (plus applicable surcharge).

LTCG can be exempted from tax by investing the gains from sale of property in specified bonds notified by the central government within 6 months from the sale or by investing in a residential property in India, both subject to conditions.

In the report, Parizad Sirwalla, partner and head, global mobility services, tax, KPMG in India says, "A tax deduction can be claimed in respect of principal repayment of home loans borrowed for the construction or purchase of a house (self-occupied/let-out), up to ₹1.5 lac permitted in respect of all investments/expenses that qualify for deduction under Section 80C. There is no bar on making the claim in respect of multiple houses as long as the total deduction, including other investments, is up to ₹1.5 lac. This deduction is subject to you holding the property for at least 5 years from the end of the year in which you got possession."

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