# Bought a co-owner’s half of a property? Tax rules differ for each share 2026-08-12T19:52:46+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet If you buy a co-owner's 50% share in a jointly held property and later sell the entire asset, you must compute capital gains separately for each share. Experts say the two halves have different acquisition dates and costs, so treating them as one can lead to errors. The holding period of each share, 24 months for long-term status, determines the tax rate. Long-term gains after 23 July 2024 are taxed at 12.5% without indexation. Short-term gains are added to your income and taxed as per your slab. For example, if you bought the first 50% for Rs 30 lakh in 2022 and the second 50% for Rs 50 lakh in 2025, then sold the whole property for Rs 1.5 crore in 2026, the gain on the first half is long-term and on the second half is short-term. The Section 54 exemption applies only to the eligible long-term gain, not to the short-term gain. You must reinvest the proceeds in another residential house within the specified period to claim it. ## Coverage - livemint.com Tags: capital gains tax, Income tax, joint property, LTCG, real estate, Section 54 Canonical: https://indianopinion.org/bought-a-co-owners-half-of-a-property-tax-rules-differ-for-each-share/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/bought-a-co-owners-half-of-a-property-tax-rules-differ-for-each-share/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.