Selling Property in Una? What You Need to Know About Capital Gains Tax in Himachal Pradesh

relaxtaxg
Jun 23
2 min read

By Gagan Sood (IRS Retd.) | Founder, RelaxTax

Selling a property — whether it's inherited land, an old house, or agricultural land — is a big financial decision. But what many people overlook is the capital gains tax that comes with it. If you’re based in Una or anywhere in Himachal Pradesh, here’s a clear, no-jargon guide to help you understand what you’ll owe, what you can save, and how to do it right.

💡What is Capital Gains Tax?

When you sell a property for more than what you paid (or what it was valued at if inherited), the profit is called a capital gain, and it's taxable under the Income Tax Act.

Short-Term Capital Gain (STCG): If sold within 2 years of purchase — taxed as per your income slab
Long-Term Capital Gain (LTCG): If held for more than 2 years — taxed at 20% after indexation benefits

📍 Common Scenarios We See in Una

Inherited agricultural land or house being sold by family
Joint ownership property sales between siblings
Selling ancestral land to invest in new home or children’s future
NRI families returning and liquidating property assets

In each of these cases, the tax implications vary widely, and most people don’t plan for them until it’s too late.

🛑 Mistakes We See People Making

Selling without checking cost inflation index (CII) and actual gain
Not claiming exemptions under Section 54, 54F or 54EC
Using incorrect valuation for inherited properties
Missing advance tax deadlines, leading to penalties

✅ What Can You Do to Save Tax?

You may be eligible for exemptions under these sections:

Section 54: If you reinvest in another residential house
Section 54F: For non-residential properties
Section 54EC: Invest gains in certain government bonds within 6 months
Use indexed cost if your property was purchased years ago — this lowers your tax bill

🧾 Example (Realistic Scenario from Himachal):

Mr. Sharma, a resident of Una, sold ancestral land for ₹60 lakhs. The property was inherited in 1990, with an indexed cost of ₹8 lakhs. Without tax planning, his LTCG liability would have been ₹10.4 lakhs.But with Section 54EC bonds and correct valuation, his effective tax was reduced to just ₹1.2 lakhs.

👨‍💼 Why Consult RelaxTax Before You Sell?

With 35+ years of experience in the Indian Revenue Service, Gagan Sood (IRS Retd.) now helps individuals and families in Himachal handle capital gains the smart way.

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