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House sold by you is a long-term capital asset. Any gain arising on transfer of capital   asset is charged to tax under the head “Capital Gains”. Income-tax Law has prescribed   the method of computing capital gain arising on account of sale of capital assets. Thus,     to check the taxability in your case, you have to compute capital gain by following the   rules laid down in this regard, and if the result is gain, then the same will be liable to tax.

Capital gain arises if a person transfers a capital asset. section 47 excludes various transactions from the definition of 'transfer'. Thus, transactions covered under section 47 are not deemed as 'transfer' and, hence, these transactions will not give rise to any    capital gain. Transfer of capital asset by way of gift, will, etc., are few major transactions covered in section 47. Thus, if a person gifts his capital asset to any other person, then    no capital gain will arise in the hands of the person making the gift (*). If the person receiving the capital asset by way of gift, will, etc. subsequently transfers such asset, capital gain will arise in his hands. Special provisions are designed  to  compute capital gains in the hands of the person receiving the asset by way of gift, will, etc. In such a case, the cost of acquisition of the capital asset will be the cost of  acquisition to the previous owner and the period of holding of the capi...

Generally, transfer means sale, however, for the purpose of Income-tax Law "Transfer”,    in relation to a capital asset, includes: i.   Sale, exchange or relinquishment of the asset; ii.   Extinguishment of any rights in relation to a capital asset; iii.   Compulsory acquisition of an asset; iv. Conversion of capital asset into stock-in-trade; v. Maturity or redemption of a zero coupon bond; vi.   Allowing possession of immovable properties to the buyer in part performance of the contract; vii.   Any transaction which has the effect of transferring an (or enabling the enjoyment of) immovable property; or viii.   Disposing of or parting with an asset or any interest therein or creating any interest in any asset in any manner whatsoever.

The fair market value of the asset as on 1st June, 2016 [which has been taken into account for the purpose of said declaration Scheme, 2016] shall be deemed as cost of acquisition of the asset. [This provision is applicable w.e.f. 1-4-2017]

Generally, cost of acquisition of a capital asset is the cost incurred   in   acquiring   the capital asset. It includes the purchase consideration plus any expenditure incurred exclusively for acquiring the capital asset. However, in respect of capital asset acquired before 1st April, 2001, the cost of acquisition will be higher of the actual cost   of   acquisition of the asset or fair market value of the asset as on 1st April, 2001. This option is not available in the case of a depreciable asset.

Indexation is a process by which the cost of acquisition/improvement of a capital asset is adjusted against inflationary rise in the value of asset. The benefit of indexation is   available only in case of long-term capital assets and is not available in case of short-   term capital assets.

Short-term capital gain arising on account of transfer of short-term capital asset is computed as follows: Particulars Rs. Full value of consideration ( i.e.,  Sales value of the asset) XXXXX Less:  Expenditure incurred wholly and exclusively in connection with transfer of capital asset (E.g., brokerage, commission, etc.)   (XXXXX) Net Sale Consideration XXXXX Less:  Cost of acquisition ( i.e ., the purchase price of the capital asset) (XXXXX) Less:  Cost of improvement ( i.e.,  post purchase capital expenses incurred  on  addition/improvement to the capital asset) (XXXXX) Short-Term Capital Gain XXXXX ​ 

Long term capital gain arising on account of transfer of long-term capital asset will be computed as follows: Particulars Rs. Full value of consideration ( i.e.,  Sales consideration of asset) XXXXX Less:  Expenditure incurred wholly and exclusively in connection with transfer of capital asset (E.g., brokerage, commission,  etc.)  (XXXXX) Net sale consideration XXXXX Less:  Indexed cost of acquisition (*) (XXXXX) Less:  Indexed cost of improvement, if any (*) (XXXXX) Long-Term Capital Gain XXXXX Indexed cost of acquisition is computed with the help of following formula :   Cost of acquisition × Cost inflation index of the year of transfer of capital asset                         Cost inflation index of the year of acquisition   Indexed cost of improvement is computed with the help of following formula :   Cost of imp...

​​The taxability of capital gain depends on the nature of gain, i.e. whether short-term or long-term. Hence to determine the taxability, capital gains are classified into short-term capital gain and long-term capital gain. In other words, the tax rates for long-term capital gain and short-term capital gain are different. Similarly, computation provisions are different for long-term capital gains and short-term capital gains.​

Gain arising on transfer of long-term capital asset is termed as long-term capital gain and gain arising on transfer of short-term capital asset is termed as short-term capital gain. However, there are a few exceptions to this rule, like gain on depreciable asset is always taxed as short-term capital gain.​​​

Any capital asset held by a person for a period of more than 36 months immediately preceding the date of its transfer will be treated as long-term capital asset. However, in respect of certain assets like shares (equity or preference) which are listed in a recognised stock exchange in India, units of equity oriented mutual funds, listed securities like debentures and Government securities, Units of UTI and Zero Coupon Bonds, the period of holding to be considered is 12 months instead of 36 months. In case of unlisted shares in a company, the period of holding to be considered is 24 months instead of 36 months. With effect from Assessment Year 2018-19, the period of holding of immovable property (being land or building or both), shall be considered to be 24 months instead of 36 months.

Capital asset is defined to include: a) Any kind of property held by an assesse, whether or not connected with business or profession of the assesse. b) Any securities held by a FII which has invested in such securities in accordance with the regulations made under the SEBI Act, 1992. However, the following items are excluded from the definition of "capital asset": Any stock-in-trade, consumable stores, or raw materials held by a person for the purpose of his business or profession. E.g.,  Motor car for a motor car dealer or gold for a jewellery merchant, are their stock-in-trade and, hence, they are not capital assets for them. Personal effects of a person, that is to say, movable property including wearing apparels (*) and furniture held for personal use, by a person or for use by any member of his family dependent on him. (*) However, jewellery, archeological collections, drawings, paintings, sculptures, or any work of art are not treated as personal effects and...

Any profit or gain arising from transfer of a capital asset during the year is charged to tax under the head “Capital Gains”. ​ https://www.incometaxindia.gov.in/Pages/faqs.aspx