New Delhi, Aug 6 (SocialNews.XYZ) Listening to the industry's demand, the government on Tuesday moved an amendment to the Finance Bill 2024, to allow taxpayers select either a 12.5 per cent long-term capital gains (LTCG) tax rate without indexation or a 20 per cent rate with indexation for property acquired before July 23 this year.
Finance Minister Nirmala Sitharaman, while presenting Union budget, had announced that the tax on LTCG had been slashed to 12.5 per cent from 20 per cent.
However, the indexation benefit on real estate transactions for properties bought in and after 2001 was scrapped.
"In the case of transfer of a long-term capital asset, being land or building or both, by an individual or HuF, which is acquired before the 23rd day of July, 2024, the taxpayer can compute his taxes under the new scheme (12.5 per cent without indexation) and old scheme (20 per cent with indexation) and pay such tax which is lower of the two,” according to the amendment.
Indexation adjusts the purchase price of an asset for inflation, thereby reducing the gains and ultimately the tax liability.
Mukul Bagla, Chair of the Direct Tax Committee at PHD Chamber of Commerce and Industry (PHDCCI), said that in the Finance Bill 2024, the Finance Minister has rationalised the provisions of taxation of a capital gain on the real estate sector. However, at the same time, the Bill has denied the benefit of indexation of the cost with respect to all transactions which take place after July 23, 2024.
Source: IANS
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz
This website uses cookies.
