The profit made on sale of any property is called as Capital Gain and tax paid on this gain is called capital gain tax. In case the property was held for less than 3 years it is short term capital gain and in case it is held for more than 3 years it is long term capital gain. Long term capital gain is lower than short term capital gain. It is taxed at 20% with indexation. Read more on this on http://www.property.fintotal.com/Concepts/All-About-Taxes-Property-Investments/454/38.
However you can save the entire capital gains taxable amount by investing it in another residential property. Read this in the article http://www.property.fintotal.com/Viewpoints/Save-on-Capital-Gains-Tax-while-Selling-Property/2629/51.
All Property FAQs