Capital Gains Tax on Selling Property in Vasai/Virar

Capital Gains Tax on Selling Property in Vasai/Virar

Is the capital gain tax on selling property catching you off guard in the course of selling your flat? It is essential to understand capital gain if you own a property for years or if you are flipping it to earn a profit. Making yourself educated about capital gains has become essential to deal with all of this. Your earnings are affected by the slightest change in indexed costs to TDS deductions.

The tax on selling property is significant, particularly in regions where property prices have consistently increased over the years, such as the Vasai-Virar area. This blog will help you understand what to expect and provide tips on how to minimize legal liability.

1. Why Understanding Tax on Selling Property Matters in Real Estate?

It is said that in the real estate market, ignorance isn’t bliss; it's expensive. Knowing the workings of capital gains tax on selling property laws, especially, can help you in many ways:

  • Avoid unexpected deductions.
  • To prevent unexpected deductions, be proactive and informed.
  • Enhance returns after the sale.
  • Claim legal exemptions available under the Income Tax Act.

Tax planning is crucial when selling property, upgrading assets, exiting, or liquidating assets.

2. What Is Capital Gains Tax on Property?

The tax that is paid on the profit earned from the sale of an asset is known as capital gain. In this case, it is either a flat or an apartment.

There are two types of capital gains:

  • Short-term capital gains (STCG) are taxed on the profit when the property bought is sold within 2 years of purchase, and the tax rate can be as high as 30% depending on your income and the applicable tax slab rate.
  • Long-term capital gains (LTCG) are taxed when the property is sold after two years from the purchase date and are charged on the profit from the sale at a flat tax rate of 20%, applicable, along with an indexation benefit.

The purchase price is adjusted for inflation because taxable profit is reduced after indexation.

3. Full Breakdown on Tax on Selling Property in Vasai/Virar

LTCG is applied when, for example, you purchased a 1BHK flat in Vasai by JSB Group’s Project Nakshatra Veda, located in Vasai East, in 2018 for ₹30 lakhs, and it is sold for ₹55 lakhs in 2025.

Indexed cost could raise your purchase price to ₹40–₹42 lakhs (depending on inflation), which means you’ll be taxed on only ₹13–₹15 lakhs profit, not the complete ₹25 lakhs.

LTCG Tax = 20% of net gains after indexation

STCG Tax = Added to your taxable income

Always consult a CA or tax advisor for property sales above ₹50 lakhs, especially in developing zones like Vasai-Virar-Virar, where appreciation has been rapid in JSB’s township projects.

4. Tips on How to Calculate Capital Gains on Selling a Flat

The simple formula to calculate capital gain on selling a flat:

LTCG is equal to Sale Price Less Indexed Purchase Price Less Expenses, for example, legal, brokerage, etc.

Example 1 By JSB Group Project : -

Lets say you wish to sell a flat that you bought for ₹40 lakhs and that is the price for 1 bhk or 2 bhk in Vasai in JSB Nakshatra Aazstha. CII adjusted Indexed Cost is ₹55 lakhs, and the selling price in 2025 is ₹80 lakhs. Hence the LTCG will be ₹80L – ₹55L = ₹25 lakhs and approx LTCG tax paid will be ₹5 lakhs.

Example 2 By JSB Group Project : -

You sold a flat in JSB Group's Nakshatra Prithvi, either a 1 or 2 BHK flat in Vasai East, which you had bought in 2022 for ₹45 lakhs and sold in 2024 for ₹60 lakhs. Then STCG applies a profit of ₹15 lakhs, which is added to your taxable income.

5. How to Save Tax on Selling Property Legally?

Want to save 20% on your gains? Let's talk about a few legal options that will help you save 20% on your profit on the sale of property:

  • Section 54: If the gains from the sale of a residential house are reinvested in purchasing another residential property within 2 years or constructing another residential property within 3 years from the date of purchase, this section helps provide exemptions from LTCG tax
  • Section 54EC Bonds: Invest your capital gains (up to ₹50 lakhs) in NHAI or REC bonds within 6 months.s
  • Set-Offs: Deduct expenses like brokerage, legal fees, and stamp duty from gains.

A tax consultant can help you apply these in combination to minimise your burden.

6. What to Know about TDS on Selling Property in Vasai/Virar?

TDS is applied at the time of transaction if your property’s sale value is ₹50 lakhs or more.

  • TDS deducted by the buyer for residential Indians
  • 20% TDS + surcharge (with or without gains) for NRIs

The buyer files Form 26QB, and it is essential to ensure that the PAN is correctly mentioned. JSB Homemakers provides legal support to ease the process of reselling flats.

7. Documents Required to File Tax After Property Sale

Here’s what you’ll need at the time of return filing:

  • Registered Sale Deed
  • Indexation Sheet
  • Original Purchase Agreement
  • Home Improvement Receipts
  • Brokerage/Legal Fee Bills
  • Form 16B

JSB Group’s Support

The company often provides the following for customers selling through JSB Group:

  • Document verification
  • Original agreement copies
  • Cost sheet references
  • Help with Form 16B or TDS certificate retrieval.

This support can make your filing faster, cleaner, and audit-safe.

Conclusion

Protecting your profit today is all about understanding capital gain tax, and yes, it is not just about compliance. A little planning before selling a flat, upgrading to a JSB Group’s 3 bhk flat in Vasai East will help you save lakhs.

As per Section 54, your sale of property will provide you with a clear plan, right from indexed cost calculations to exemption strategies. If you are buying a property in JSB Group’s project, you are already secured with legal documentation, which will make the process smooth.

Capital Gains Tax on Selling Property in Vasai/Virar