BIG RELIEF FOR HOMEOWNERS AS GOVERNMENT GIVES OPTIONS ON LONG TERM CAPITAL GAINS TAX
The Lok Sabha on August 7 passed the Finance Bill 2024 and amended the long term capital gains tax provision on immovable properties giving taxpayers an option to switch to a new lower tax rate or stay with the old regime that had higher rate with indexation benefit.
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Aug 8, 2024
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For properties purchased before July 23, 2024, taxpayers can choose between a 12.5% Long-Term Capital Gains (LTCG) tax rate without indexation and a 20% rate with indexation, according to the government's updated budget declaration.
Experts in real estate and tax appreciated the action, stating that by perhaps lessening the tax burden on sellers, it is anticipated to encourage investment and sales in the home market.
According to Vimal Nadar, Senior Director and Head of Research at Colliers India, "the government's amendment to not enforce the revised taxation rules on long term capital gains arising out of sale of land and buildings retrospectively is expected to boost investors’ and homeowners’ sentiment and thus the real estate sector at large."
This modification is timely and will help ease concerns about the taxability of capital gains at a time when housing sales are stabilizing at higher levels than the historical average, he said.
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