Deccan Chronicle - - Money -

Re­turns from real es­tate clas­sify as long term in two years. Long term cap­i­tal gains are taxed at 20.8 per cent with in­dex­a­tion ben­e­fits. Short term gains are taxed as per slab rate. Since prop­erty costs and cap­i­tal gains may be high, sell­ing them as long term as­sets pro­vides the seller in­dex­a­tion ben­e­fits, which can sig­nif­i­cantly lower the tax on such gains.

Tax Ef­fi­ciency & Rat­ing: 4/5 Re­turns gen­er­ated is tax-ex­empt dur­ing ac­cu­mu­la­tion stage. The in­ter­est in NSC is also rein­vested thereby pro­vid­ing ad­di­tional ben­e­fits un­der Sec­tion 80C. The in­ter­est is taxed only on ma­tu­rity.

Tax Ef­fi­ciency & Re­turns Rat­ing: 3/5 for reg­u­lar in­vestors; 3.5/5 for se­nior cit­i­zens.

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