One of my relatives had purchased a property (A flat in a building) in Mumbai suburb one and a half year ago. Now he is selling the property and purchasing another one in same suburb. The capital gain is around 15-18 lacs. How the tax will be calculated on this transaction? He is a salaried employee.
Since the immovable property is sold within a period of 3 years from the date of acquisition, the gain would be considered under the category of Short Term Capital gains. The gain would certainly be added to other normal income and taxed as per normal rates of income tax.