Which ITR Form to Use if You Have Sold House or Land in FY 2024-25?
If you are reporting capital gains from the sale of a house or land in FY 2024-25, you generally need to file ITR-2. Salaried individuals or pensioners with capital gains must also choose ITR-2. Business owners with such income might have to use ITR-3. Filing the correct form is the first step in understanding how to file ITR if you have sold house or land in FY 2024-25.
Short-Term vs Long-Term Capital Gains
When learning how to file ITR if you have sold house or land in FY 2024-25, it is important to know the difference between short-term and long-term gains:
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Short-Term Capital Gains (STCG): If the property was held for less than 24 months before sale, the gains are taxed as per your income slab.
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Long-Term Capital Gains (LTCG): If the property was held for 24 months or more, the gains are taxed at 20% with indexation benefits.
This classification determines how you declare and pay taxes in your ITR for FY 2024-25.
Step-by-Step Guide: How to File ITR if You Have Sold House or Land in FY 2024-25
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Collect Sale and Purchase Documents – Keep the sale deed, purchase deed, and proof of payment ready.
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Calculate Capital Gains – Deduct the indexed cost of acquisition, improvement, and transfer expenses from the sale value.
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Report in ITR Schedule CG – Mention full details of the sale, cost, and gains in the Capital Gains schedule of ITR-2.
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Claim Exemptions if Eligible – Use Section 54 (for reinvestment in a new house) or Section 54EC (for investment in bonds) to reduce tax liability.
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Pay Advance Tax if Required – If your capital gains tax liability exceeds ₹10,000, pay advance tax to avoid interest.
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File ITR Before Due Date – The deadline for filing ITR for FY 2024-25 is 31st July 2025 (unless extended).
These steps ensure you comply properly with how to file ITR if you have sold house or land in FY 2024-25.
Exemptions Available on Sale of House or Land
While checking how to file ITR if you have sold house or land in FY 2024-25, don’t miss tax-saving options:
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Section 54: Reinvest in another residential property within the allowed time frame.
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Section 54EC: Invest capital gains (up to ₹50 lakh) in specified bonds within 6 months.
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Section 54F: Applies if you sold land and invest proceeds in a residential house.
These exemptions can significantly reduce your tax burden when filing ITR.
Common Mistakes to Avoid
Many taxpayers make errors when learning how to file ITR if you have sold house or land in FY 2024-25. Avoid these:
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Not reporting full sale consideration.
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Missing indexation benefit for long-term gains.
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Forgetting to pay advance tax.
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Choosing the wrong ITR form.
Accuracy is crucial to avoid notices from the Income Tax Department.
Final Thoughts
Filing ITR after selling property requires careful reporting of capital gains and claiming eligible exemptions. By following the correct procedure, you can legally minimise your tax burden and stay compliant. Always consult a tax professional if calculations seem complex. Understanding how to file ITR if you have sold house or land in FY 2024-25 will not only keep you stress-free but also ensure smooth tax filing for the financial year.
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