The government can give relief to property owners. According to sources, the central government will amend the indexation proposal in real estate and taxpayers will get options in this matter. Under an amendment, the government will assess the property purchased before July 23, 2024 on the basis of the previous real estate indexation benefits as well as the new lower rate without indexation.
Government can give relief to property owners. According to sources, the central government will amend the indexation proposal in real estate and taxpayers will get options in this matter. Under an amendment, the government will assess the property purchased before July 23, 2024 on the basis of the previous real estate indexation benefits as well as the new lower rate without indexation. After this, tax payment will be accepted on the basis of the method on which the tax will be less.
Earlier, Moneycontrol had reported that the central government is reconsidering its decision to remove the indexation benefit on the sale of property. Finance Minister Nirmala Sitharaman had announced the abolition of indexation benefit in her budget presented on July 23, 2024. A source said, ‘For such property which is acquired before July 23, 2025, the taxpayer can assess his tax under both the new and old schemes and can pay on the basis of whichever amount is less.’
This change can be included in the Finance Bill, which was introduced in the Lok Sabha on August 6. In the Union Budget 2024, Finance Minister Nirmala Sitharaman made several important announcements related to tax. One of the important changes was also regarding real estate transactions. These changes included removing indexation benefit and reducing LTCG tax from 20% to 12.5%. Through indexation, the purchase price of the property is increased according to inflation.
This reduces the profit. As a result, less tax has to be paid. In simple words, the tax liability is reduced due to indexation benefit. While presenting the Budget 2024-25, Finance Minister Nirmala Sitharaman had announced to reduce the tax to 12.5 percent with the removal of indexation benefit from the sale of property. There was unhappiness in different sections about this.
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