NEW DELHI: Union finance minister Nirmala Sitharaman on Wednesday introduced amendments concerning the Lengthy-Time period Capital Positive factors (LTCG) tax proposal on actual property throughout a debate on the Finance Invoice in Lok Sabha.
Taxpayers will now have the selection to calculate their tax legal responsibility utilizing both the previous system or the decreased charges with out indexation, and pay the decrease of the 2 quantities.The rollover profit will nonetheless be out there for many who buy new immovable property utilizing the capital positive aspects from the sale of previous property.
The Union Funds 2024-25 offered on July 23, proposed a decreased LTCG tax fee of 12.5 %, down from 20 %, whereas eliminating the indexation profit. This proposal confronted important criticism from numerous stakeholders, together with opposition events and tax professionals.
A key modification within the Invoice addresses the restoration of indexation profit for properties bought earlier than July 23, 2024. People or Hindu Undivided Households (HuFs) who acquired homes previous to this date can now select between paying LTCG tax on the new fee of 12.5 % with out indexation or claiming the indexation profit and paying a 20 % tax.
The finance minister had stated that the indexation profit was proposed to be eliminated within the Funds to carry all asset courses underneath one fee and to not improve income.
Taxpayers will now have the selection to calculate their tax legal responsibility utilizing both the previous system or the decreased charges with out indexation, and pay the decrease of the 2 quantities.The rollover profit will nonetheless be out there for many who buy new immovable property utilizing the capital positive aspects from the sale of previous property.
The Union Funds 2024-25 offered on July 23, proposed a decreased LTCG tax fee of 12.5 %, down from 20 %, whereas eliminating the indexation profit. This proposal confronted important criticism from numerous stakeholders, together with opposition events and tax professionals.
A key modification within the Invoice addresses the restoration of indexation profit for properties bought earlier than July 23, 2024. People or Hindu Undivided Households (HuFs) who acquired homes previous to this date can now select between paying LTCG tax on the new fee of 12.5 % with out indexation or claiming the indexation profit and paying a 20 % tax.
The finance minister had stated that the indexation profit was proposed to be eliminated within the Funds to carry all asset courses underneath one fee and to not improve income.
