Mumbai, August 6: The government on Tuesday moved an amendment to provide relief to the real estate under LTCG regime as the government said that it will allow taxpayers to avail either lower rate of 12.5 percent without indexation or higher 20 percent rate with indexation for property acquired before July 23, 2024.
In the Union Budget, Finance Minister Nirmala Sitharaman announced the withdrawal of indexation benefits from real estate and lowered the LTCG tax from 20 per cent to 12.5 per cent.
What Is Indexation?
Indexation adjusts the purchase price of an asset for inflation, thereby reducing the gains and ultimately the tax liability.
Who Benefits From Move And Who Doesn't?
The government providing an option to taxpayers to compute tax either at 12.5% without indexation or 20% with indexation on realty transactions comes as a relief to the taxpayers and the real estate. The move helps all the existing owners of property but will not be beneficial for those who are going to acquire properties from now on as it is applicable on property/properties acquired before July 23, 2024.
