Centre Revises LTCG Indexation on Real Estate, Offers Relief to Home Buyers
Latest News. The Centre has rolled back its decision to remove indexation benefits on real estate, offering relief to home buyers.
LtcgReal EstateHome BuyersTax IndexationNirmala SitharamanReal Estate NewsAug 06, 2024
The government has moved amendments to the Finance Bill, giving taxpayers the option to calculate capital gains tax on real estate properties. Taxpayers can now choose between two options either calculate liability at 12.5 per cent without indexation, or 20 per cent with indexation.
This move offers relief to those who purchased property before July 23, 2024. The government has essentially offered a choice between retaining old indexation benefits or opting for the new regime.
In the Union Budget 2024, Finance Minister Nirmala Sitharaman had announced the withdrawal of indexation benefits from real estate and lowered the LTCG tax from 20 per cent to 12.5 per cent. Indexation adjusts the purchase price of an asset for inflation, thereby reducing the gains and ultimately the tax liability.
This revision is expected to benefit home buyers who were facing higher tax liabilities due to the withdrawal of indexation benefits. The move is seen as a relief measure for the real estate sector, which has been facing challenges in recent times.
The Centre's decision to revise LTCG indexation on real estate is a welcome move, and it is expected to boost the morale of home buyers and the real estate sector as a whole.
About Nirmala Sitharaman
Nirmala Sitharaman is the current Finance Minister of India. She presented the Union Budget 2024, which included several key announcements, including the withdrawal of indexation benefits from real estate.
About the Finance Bill
The Finance Bill is an annual bill presented by the Finance Minister of India, which outlines the taxation proposals for the upcoming financial year. The bill is debated and passed by the Parliament, and it becomes an Act of Parliament after receiving the President's assent.
About tax indexation
Indexation is the process of adjusting the purchase price of an asset for inflation, which reduces the gains and ultimately the tax liability. Indexation benefits were earlier available to real estate investors, but were withdrawn in the Union Budget 2024.
Frequently Asked Questions
What is LTCG indexation on real estate?
LTCG indexation on real estate is the process of adjusting the purchase price of a property for inflation, which reduces the gains and ultimately the tax liability.
What was announced in the Union Budget 2024 regarding LTCG indexation on real estate?
In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced the withdrawal of indexation benefits from real estate and lowered the LTCG tax from 20 per cent to 12.5 per cent.
What is the revised LTCG indexation on real estate announced by the Centre?
The Centre has revised the LTCG indexation on real estate, offering taxpayers the option to calculate capital gains tax on real estate properties at 12.5 per cent without indexation, or 20 per cent with indexation.
Who will benefit from the revised LTCG indexation on real estate?
The revised LTCG indexation on real estate will benefit home buyers who purchased property before July 23, 2024, and were facing higher tax liabilities due to the withdrawal of indexation benefits.
What is the expected impact of the revised LTCG indexation on real estate on the real estate sector?
The revised LTCG indexation on real estate is expected to boost the morale of home buyers and the real estate sector as a whole, and provide relief to those affected by the withdrawal of indexation benefits.
Related News Articles
Mumbai Khadi & Village Industries Association Sells 3.84 Acre Land for Rs 540 Crore
The Mumbai Khadi & Village Industries Association (MKVIA) has made a significant financial move by selling its 3.84-acre land in Borivali for over Rs 539.25 crore to a local real estate developer. This sale marks a major milestone in the organization's history and highlights the ongoing development in the Borivali area.
Uttar Pradesh's Housing Crisis: 378 Projects Stalled in 5 Cities
Real estate projects in Uttar Pradesh have come to a grinding halt, with 378 stalled housing projects across 5 cities, including Noida and Greater Noida.
Vivek Oberoi's Empire: From Luxury Cars to Real Estate Ventures
Vivek Oberoi's Empire: From Luxury Cars to Real Estate Ventures.
Uday Kotak and Family Acquire 12 Flats in Mumbai for Over ₹200 Crore, Setting New Real Estate Records
Uday Kotak, the chairman and managing director of Kotak Mahindra Bank, has made headlines with the acquisition of 12 flats in Mumbai's exclusive real estate market. The 11 out of 12 transactions were registered on January 30, 2025, with the remaining one
CREDAI-MCHI and MAHAPREIT Join Forces to Tackle Emissions in Construction
CREDAI-MCHI, the leading organization representing the real estate sector in the Mumbai Metropolitan Region (MMR), has recently partnered with MAHAPREIT to implement sustainable practices and reduce emissions in the construction industry.
Maharashtra Real Estate: Majority of Developers Update Project Details for MahaRERA Compliance
A significant number of real estate developers in Maharashtra have taken steps to improve their compliance with the Maharashtra Real Estate Regulatory Authority (MahaRERA) by updating their project details. This move reflects a growing commitment to trans