30.1 As per the current provisions, if any immovable property, being land or building or both, is held for more than 36 months, it is considered as long-term capital asset. Capital gain on sale is considered as Long Term Capital Gain. Tax rate is lower on such gain. Other reliefs like inflation adjustment and relief for investment in bonds / house property is available to further reduce the tax.
30.2 Finance Bill provides that if any immovable property is held for more than 24 months, it will be considered as long-term capital asset. This is a welcome relief to taxpayers owning land and building. .