The income from the sale of immovable property is classified under "Capital Gains" as short-term capital gains or long-term capital gains, based on the period of holding.
If the TDS is deducted & deposited by the buyer, it will be reflected in your Form 26AS. You can claim this tax credit while filing your Income Tax Return.
To report capital gains from the sale of immovable assets, follow these steps:
- Navigate to Incomes > Capital Gains
- Click on "Did you sell Immovable Property?", enter the full address of the asset sold and click on save
- Next, add further details of the property like the description of the property sold, the purchase and sale date as well as the purchase and sale price and if any, transfer expenses paid then, save the changes
- Now, you will be prompted to add Buyer details. If you don't have these details you can also skip this step and edit them later.
- If you have made any renovation to the property and want to claim expenses, you can click on "Claim Expenses", select the relevant Financial Year and enter the amount. If you don't wish to claim any expenses, you can simply click on "Skip & Continue"
- You can claim deduction under Section 54, Section 54EC, and Section 54B if you have made any investment in residential property, agricultural land, government bonds, and more out of the sale proceeds. You can click on "Cancel" if you have not made any such investments
You will be landed on the summary of your indexed gains/losses from the sale of immovable assets, which will look like this: