Add capital gain from the sale of house property

Capital gains arise when you sell a house property. The difference between the sale price and the purchase cost determines the capital gain or loss, which is taxable under the Income Tax Act.

Sold a house property and need to report the capital gains in your Income Tax Return (ITR)? Follow these steps to report capital gains accurately:

Steps to Add Real Estate Capital Gains

1. Navigate to: File > Capital Gains

2. Select: Real Estate > Add Real Estate Gains

3. Enter Property Details:

   • Full address of the land or building

   • Asset Type (Residential property, commercial property, non-agricultural land, or urban agricultural land)

   • Name of the property

   • Buy price and Sell price

   • Buy date and Sell date

   • Transfer expenses incurred

4. Enter Buyer's Details:

   • Name

   • PAN

   • Percentage of ownership

5. Save the details once all fields are filled.
   
   

The system calculates gains based on the Inflation Index provided by the Government of India.

Adding Cost of Improvement

If you incurred any capital expenditure for improvements or additions to the property, you can add it as Cost of Improvement:

1. Navigate to the already added real estate entry.

2. Go to Property Details > Cost of Improvement.

3. Add Expenses:

   • Select the financial year when expenses were incurred.

   • Enter the amount spent.

4. Click on Add to include multiple entries.

Once all details are saved, the system will calculate your capital gains automatically.

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