look news india
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 one amendment, the government will evaluate the property purchased before 23 July 2024 on the basis of the previous real estate indexation benefit as well as the new lower rate without indexation. After this, tax payment will be accepted on the basis of the method which reduces the tax.
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 the indexation benefit in her budget presented on July 23, 2024. A source said, 'For a property acquired before July 23, 2025, the taxpayer can assess his tax under both the new and old schemes and pay based on 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 profits. As a result, less tax has to be paid. In simple words, tax liability is reduced due to indexation benefit. While presenting Budget 2024-25, Finance Minister Nirmala Sitharaman had announced to reduce tax to 12.5 percent along with removing indexation benefit from property sales. There was resentment among different sections regarding this.
