New Delhi, June 2 -- If you have recently sold a house or are planning to do so, understanding the tax treatment of the profit is essential. The gain from the sale will attract capital gains tax, though the tax treatment depends on how long the property was held before sale and the amount of gain earned.

The income tax law provides several exemptions that can help reduce or even eliminate the tax liability if certain conditions are met. Here's how profits from a home sale are taxed and the key exemptions available to property sellers.

If a house is sold after being held for more than 24 months, the profit is treated as long-term capital gain (LTCG). The taxable gain is calculated by deducting the cost of the house from its net sale pric...