31/07/2024
In a move that could significantly impact the real estate sector, sources have told CNBC-TV18 that the government is reviewing proposals for removing indexation benefits for real estate deals. While no official decision has been made, the sources indicate that the government is considering representations received from various stakeholders.
The proposals aim to address concerns over the potential negative effects of the indexation removal on the real estate market. Among the suggestions is a dual long-term capital gains (LTCG) regime specifically for real estate transactions. This proposal suggests a tax rate of 20% with indexation benefits and an alternative rate of 12.5% without indexation
This discussion comes after the recent Budget announcement, which proposed lowering the LTCG tax on real estate to 12.5%, albeit without the indexation benefit. The lack of clarity on whether any changes will be implemented has left many in the industry awaiting further guidance.
There has been no response to CNBC-TV18’s inquiries directed to the Finance Ministry regarding these developments.
Credits - https://www.cnbctv18.com/real-estate/exclusive-government-considers-proposals-on-indexation-benefit-for-real-estate-transactions-sources-19452334.htm/amp
