Big relief for homeowners as government gives options on long term capital gains tax
5 months ago

Big relief for homeowners as government gives options on long term capital gains tax

Hindustan Times  

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. The government's revised budget announcement allows taxpayers to pick between a 12.5% Long-Term Capital Gains tax rate without indexation and a 20% rate with indexation, for properties purchased before July 23, 2024. Finance Minister Nirmala Sitharaman, who in her Budget for 2024-25 proposed to lower the long-term capital gains tax on real estate to 12.5% from 20% but without the indexation benefit, moved an amendment to the finance bill on August 7 to give the option to tax payers. The Finance Bill 2024 will now go to the Rajya Sabha for discussion Finance Minister Nirmala Sitharaman on August 7 said that the current amendment with regard to the long term capital gains tax proposal on real estate is to ensure there will be no additional tax burden with regard to LTCG tax on real estate sale.

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History of this topic

Nirmala Sitharaman on LTCG amendment: 'We have courage to change'
5 months ago

Nirmala Sitharaman on LTCG amendment: 'We have courage to change'

Hindustan Times  

Finance minister Nirmala Sitharaman said that the new amendments to Finance Bill 2024 will not impose any additional tax burden concerning the long-term capital gains tax on real estate sales. Replying to the House discussion on the Finance Bill in the Lok Sabha, the minister said: “Every time we present the Budget…I have gone around the country to various destinations, …

FM Nirmala Sitharaman announces amendment to LTCG tax proposal, offers new options
5 months ago

FM Nirmala Sitharaman announces amendment to LTCG tax proposal, offers new options

Hindustan Times  

Union finance Minister Nirmala Sitharaman on Wednesday announced that the contentious long-term capital gains tax proposal on real estate is being revised. The announcement came after the Budget 2024-25 plan to remove indexation benefits for long-term capital gains on property sales faced strong criticism from opposition parties and tax experts. The Budget presented on July 23 had proposed a reduced …

Relief for homeowners: Realty experts welcome Centre’s decision to ease long term capital gains tax for sale of property
5 months ago

Relief for homeowners: Realty experts welcome Centre’s decision to ease long term capital gains tax for sale of property

Hindustan Times  

In a major relief to homeowners who bought properties before July 23, 2024, the government has proposed an amendment to the long-term capital gains tax giving them an option to choose between the lower tax rate of 12.5% without indexation or a higher rate of 20% with indexation of properties acquired before July this year. Real estate and tax experts …

Centre to ease long term capital gains tax for sale of properties
5 months ago

Centre to ease long term capital gains tax for sale of properties

Hindustan Times  

The Narendra Modi government is set to ease long-term capital gains tax for sale of properties proposed in the Union budget 2024, Reuters reported. The Narendra Modi government is set to ease long term capital gains tax for sale of properties proposed in the Union budget 2024 As per the report, in case of the transfer of a long-term capital …

Budget 2024: How removing indexation benefits for capital gains tax on property may impact the Mumbai real estate market
5 months ago

Budget 2024: How removing indexation benefits for capital gains tax on property may impact the Mumbai real estate market

Hindustan Times  

Mumbai’s resale real estate market is expected to feel the pinch with Budget 2024 doing away with the indexation benefits on long-term capital gains on sale of property. Mumbai’s resale real estate market is expected to feel the pinch with Budget 2024-2025 doing away with the indexation benefit on long-term capital gains on sale of property. According to real estate …

Budget 2024: How removing indexation benefits for capital gains tax on property may impact the Mumbai real estate market
5 months ago

Budget 2024: How removing indexation benefits for capital gains tax on property may impact the Mumbai real estate market

Hindustan Times  

Mumbai’s resale real estate market is expected to feel the pinch with Budget 2024 doing away with the indexation benefits on long-term capital gains on sale of property. Mumbai’s resale real estate market is expected to feel the pinch with Budget 2024-2025 doing away with the indexation benefit on long-term capital gains on sale of property. According to real estate …

On discarding indexation for long-term capital gains | Explained
5 months, 1 week ago

On discarding indexation for long-term capital gains | Explained

The Hindu  

The story so far: Finance Minister Nirmala Sitharaman’s announcement in the Union Budget about doing away with indexation for computing long-term capital gains tax has not drawn much enthusiasm. A memorandum explaining the provisions of the Finance Bill, stated that this was to “ease computation of capital gains for the taxpayer and tax administration”. At the erstwhile 20% rate, they …

Budget 2024 shake-up: How new rules impact homebuyers, property investors and developers
5 months, 1 week ago

Budget 2024 shake-up: How new rules impact homebuyers, property investors and developers

Live Mint  

The latest budget has significantly altered the real estate landscape, with diverse impacts across various market segments. Long-term property investors face reduced returns due to the withdrawal of indexation benefits, while first-time homebuyers might benefit from more stable prices. Aman Gupta, Director of RPS Group, notes that long-term property investors will likely be affected by removing indexation benefits on capital …

Changes in long-term capital gain tax to benefit most real estate investors: Revenue Secy
5 months, 2 weeks ago

Changes in long-term capital gain tax to benefit most real estate investors: Revenue Secy

Hindustan Times  

New Delhi, Jul 24 Revenue Secretary Sanjay Malhotra has said that the changes in Long-Term Capital Gain Tax announced in the Budget by Finance Minister Nirmala Sitharaman will benefit most of the people investing in the real estate sector. The Budget has lowered the LTCG from 20 per cent to 12.5 per cent but removed the indexation benefits. This will …

Removal Of Indexation Benefit: Homeowners Who Acquired Properties After 2001 May End Up Paying Higher Taxes
5 months, 2 weeks ago

Removal Of Indexation Benefit: Homeowners Who Acquired Properties After 2001 May End Up Paying Higher Taxes

ABP News  

In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced revisions to the capital gains tax rates and adjustments to the indexation benefits for various assets, including real estate. Cost of Index Cost of Index Selling Date 30-07-2024 363 Date of Acquisition 01-04-2012 200 Indexed Profit Profit w/o Index Sale Value 40,00,000 40,00,000 Cost 45,37,500 25,00,000 Loss -5,37,500 15,00,000 Tax …

Govt has no plan to reconsider real estate LTCG tax changes, says report
5 months, 2 weeks ago

Govt has no plan to reconsider real estate LTCG tax changes, says report

Live Mint  

Amid concerns about the removal of the indexation benefit for property sales under the Long Term Capital Gains tax, there will be no reconsideration of the changes made in the Union Budget, according to news agency ANI. The Income Tax Department refuted claims that the new budget proposal would result in significantly higher taxes on profits from selling real estate. …

Budget 2024: Planning to sell a property bought after 2001? Here are 7 things that you should know
5 months, 2 weeks ago

Budget 2024: Planning to sell a property bought after 2001? Here are 7 things that you should know

Hindustan Times  

If you bought a property in or after 2001 and plan to sell it now, you may find yourself paying more tax, especially after the new proposals introduced on July 23. Budget 2024. has reduced tax rates on capital gains earned from sale of house properties held for long term, but has removed the indexation benefit available to taxpayers. Watch: …

2001: The year that divides property sellers under new Budget tax rules
5 months, 2 weeks ago

2001: The year that divides property sellers under new Budget tax rules

Hindustan Times  

Union finance minister Nirmala Sitharaman's budget speech outlined some changes to the direct and indirect tax regimes. One of the most striking changes pertains to the LTCG tax and indexation benefits, creating a distinct divide among property sellers based on the purchase or inheritance date of their properties, with 2001 being the critical year. As per the Memorandum to the …

Indexation benefits on property removed, sparks concern. What it means for you?
5 months, 2 weeks ago

Indexation benefits on property removed, sparks concern. What it means for you?

India Today  

Finance Minister Nirmala Sitharaman announced major changes to capital gains taxation that particularly affect real estate transactions in the Union Budget 2024. The Long Term Capital Gains Tax on property sales has been reduced from 20% to 12.5%, but the budget fine print revealed that the indexation benefit on real estate has been revoked, sparking concerns that it may result …

Budget 2024: Capital gains taxes hiked, indexation benefit discontinued for property sale
5 months, 2 weeks ago

Budget 2024: Capital gains taxes hiked, indexation benefit discontinued for property sale

Hindustan Times  

Finance Minister Nirmala Sitharaman on Tuesday announced an increase in both long-term and short-term capital gains tax. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} While the short-term capital gains tax has been increased from 15 per cent to 20 per cent, LTCG will be flat at 12.5 per cent. {{^userSubscribed}} {{/userSubscribed}} {{^userSubscribed}} {{/userSubscribed}} On the positive side, for the benefit of the lower …

Budget 2024: Capital gains taxes hiked, indexation benefit discontinued for property sale
5 months, 2 weeks ago

Budget 2024: Capital gains taxes hiked, indexation benefit discontinued for property sale

Hindustan Times  

Finance Minister Nirmala Sitharaman on Tuesday announced an increase in both long-term and short-term capital gains tax. On the positive side, for the benefit of the lower and middle-income classes, Nirmala Sitharaman proposed to increase the limit of exemption of capital gains on certain listed financial assets from ₹1 lakh to ₹1.25 lakh per year. "Unlisted bonds and debentures, debt …

Budget 2024: No indexation benefit for property sales; new LTCG rate fixed at 12.5%
5 months, 2 weeks ago

Budget 2024: No indexation benefit for property sales; new LTCG rate fixed at 12.5%

Live Mint  

Before Budget 2024, property sales were subject to a 20% LTCG tax rate with indexation benefit, which adjusted the purchase price for inflation, thereby reducing the taxable capital gain. According to the Budget documents, the new tax rate for long-term capital gains on property sales will be 12.5% without indexation benefit. The LTCG tax liability under both the old and …

Budget 2024: Selling old property to attract more tax. Here's why
5 months, 2 weeks ago

Budget 2024: Selling old property to attract more tax. Here's why

India Today  

If you are planning to sell your old property, prepare for higher taxes on the transaction following the Union Budget 2024-25. During her speech, Finance Minister Nirmala Sitharaman announced changes to long-term capital gains taxation, including the removal of the indexation benefit for capital gains tax on real estate sales, which will affect most property owners. In an effort to …

Budget 2024 expectations: Realty sector calls for policy tweaks, tax reliefs
11 months, 2 weeks ago

Budget 2024 expectations: Realty sector calls for policy tweaks, tax reliefs

Live Mint  

Budget 2024 expectations: With Budget 2024-25 only days away, top real estate players lay stress on increased tax slabs and revised affordability caps in their wishlist. Acknowledging past reforms, Runwal called for an increase in the interest rate deduction cap to ₹5 lakh and a redefinition of affordable housing, particularly in metro cities. Additional proposals encompassing tax reliefs, single window …

Budget 2023: Here’s what the real estate sector is expecting from FM Sitharaman
1 year, 11 months ago

Budget 2023: Here’s what the real estate sector is expecting from FM Sitharaman

Hindustan Times  

The Indian real estate market saw a strong comeback post pandemic with the residential sector picking up demand amidst healthy economic growth, a Mint report states. The real estate sector is looking forward to budget 2023 to drive the demand for housing through tax relief and lesser stamp duty According to Gurmit Singh Arora, national president of Indian Plumbing Association, …

Union Budget 2023-24: Why favourable policies for realty sector can assist in growth, economic sustainability
1 year, 11 months ago

Union Budget 2023-24: Why favourable policies for realty sector can assist in growth, economic sustainability

Firstpost  

In a post-pandemic arena, unlike many other sectors, the Real Estate sector has rebounded strongly. Direct Tax relief measures Simply put, the expectations of home buyers can be categorised into three main buckets – enhancement of personal tax deductions, rationalisation of capital gains tax regime, and introduction of incentives. Given the trend in rising prices in the RE sector, due …

Budget 2022: More Tax Benefits on Home Loans, Affordable Housing, Real Estate Changes to Expect
2 years, 11 months ago

Budget 2022: More Tax Benefits on Home Loans, Affordable Housing, Real Estate Changes to Expect

News 18  

Finance minister Nirmala Sitharaman will present the Union Budget for 2022-2023 on February 1, 2022. Hence, the real estate sector is seeking for tax sops, a review of the definition of affordable housing, reduction of long-term capital gains tax for real estate and new provisioning for rental housing, among others. 5 lakh along with removing the Rs 45 lakh cap …

Opinion | How will LTCG benefit work as per new laws
5 years, 10 months ago

Opinion | How will LTCG benefit work as per new laws

Live Mint  

One of the most significant exemptions available for individuals under our tax laws is that relating to exemption of long-term capital gains, made on the sale of a residential house, if it’s reinvested for the acquisition of a new residential house. The exemption is available for capital gains arising on sale of a residential house, which is a long-term capital …

Budgetary sops notwithstanding, demand revival in real estate sector remains elusive
5 years, 11 months ago

Budgetary sops notwithstanding, demand revival in real estate sector remains elusive

Live Mint  

The benchmark BSE Realty index, which was initially euphoric over the budgetary sops doled out to the housing sector, finally closed a mere 1.3% higher on Friday. The timeline extension will only support momentum in affordable housing.” Revenue and profit accretion would therefore take time, since this segment has much lower margins as well. Budgetary incentives such as raising personal …

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