Big relief for home buyers, Centre makes revisions in LTCG indexation on real estate, taxpayers can...
In Union Budget 2024, Centre announced the withdrawal of indexation benefits from real estate and lowered the LTCG tax from 20 per cent to 12.5 per cent.
The Union government has decided to roll back its decision to remove indexation benefits on real estate. It moved amendments to the Finance Bill, giving taxpayers the option to calculate capital gains tax on real estate properties. Taxpayers can now calculate liability at 12.5 per cent without indexation, or 20 per cent with indexation.
Hence, the government has offered a choice between retaining old indexation benefits or opting for the new regime to those who purchased property before July 23, 2024. Relief proposed in respect of taxation of immovable property.
In the Union Budget 2024, 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. Indexation adjusts the purchase price of an asset for inflation, thereby reducing the gains and ultimately the tax liability.
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