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Land and house sale tax

Selling land or a house? The tax depends on who owns it and how long you have owned it. Five years is the line that matters.

Rs.
Rs.
Who owns it?
How long have you owned it?

How this is worked out

For an individual, tax applies to the gain — 7.5% if you owned the property for five years or more, 10% if less. For a company or firm the tax is 1.5% of the whole sale value, not the gain. Where the government compulsorily acquires land, the rate is 2.5%.

Tax on sale

Rs. 0

Gain
Rs. 0
Taxed on gain
Rs. 0
Rate
7.5%
You keep
Rs. 0

Income Tax Act 2058, section 95Ka(5) and (6). Collected at the Land Revenue Office on registration.

Property held through a company is taxed on the whole sale value, not the gain. That catches people out.

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Rates are those applying for FY 2083/84 and change with each Finance Act. This is a general guide, not advice on your circumstances. Where the amount is material, have the position checked before you act.

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