LTCG Relief on Properties: Centre Proposes Tax Relief for Property Owners by Offering Choice Between 20% Tax With Indexation or 12.5% Without Indexation
The amendment made in the Finance Bill will let taxpayers select either 12.5 per cent LTCG rate without indexation or 20 per cent rate with indexation for property purchased before July 23, 2024.
The Central government has moved amendments in the Finance Bill on the removal of the indexation benefit on calculating long-term capital gains tax (LTCG) on real estate, offering a choice between retaining old indexation benefits or opting for the new regime to those who purchased property before July 23, 2024. The amendment made in the Finance Bill will let taxpayers select either 12.5 per cent LTCG rate without indexation or 20 per cent rate with indexation for property purchased before July 23, 2024. In the Union Budget 2024-2025, presented last month, Finance Minister Nirmala Sitharaman had proposed to eliminate the indexation benefit on calculating LTCG on real estate. She had changed the LTCG tax rate to 12.5 per cent across all financial and non-financial assets. This had resulted in the LTCG tax on property falling from 20 per cent earlier. Budget 2024: Zerodha CEO Nithin Kamath Says ‘Change in Capital Gains in Budget Affect All Your Investments’, Shares Snapshot of Impact on STCG and LTCG.
Centre Announces Relief for Real Estate Under LTCG
BREAKING NEWS:
Amendment made in the Finance Bill - Relief announced for real estate under LTCG!
Taxpayers can avail either a lower rate of 12.5% without indexation or 20% rate with indexation if the property is acquired before July 23, 2024 - which ever is lower! pic.twitter.com/ng4MA2h3lB
— Pratibha Goyal (@PratibhaGoyal) August 6, 2024
(The above story first appeared on LatestLY on Aug 06, 2024 11:40 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
