Government May Offer Respite on LTCG Tax Regime for Real Estate Sector
The government is considering options to address concerns of real estate stakeholders, including a 'grandfathering clause' for transactions completed before July 2024.
Real EstateLtcg Tax RegimeGrandfathering ClausePhdcciFinance BillReal EstateAug 06, 2024
According to Mukul Bagla, Chair of the Direct Tax Committee at PHD Chamber of Commerce and Industry (PHDCCI), the Finance Minister has rationalised the provisions of taxation of capital gain on the real estate sector in the Finance Bill 2024. However, the Bill has denied the benefit of indexation of the cost with respect to all transactions that take place after July 23, 2024.
The PHD Chamber has proposed to the Revenue Secretary that the old law may be retained or retained at least till March 31, 2025. They have also suggested giving an option to the Securities and Exchange Commission (SEC) to choose between the old regime where indexation was allowed and tax was to be paid at 20 per cent, and the new regime wherein there is no indexation loan, but the tax has to be paid at the rate of 12.5 per cent.
The Revenue Secretary has stated that the LTCG tax regime changes were driven by simplicity, fairness, and equity. The government is likely to address these concerns in the Finance Bill, which is expected to be taken up by the Finance Minister on Wednesday.
The real estate sector has been impacted by the LTCG tax regime, and the government's decision to withdraw indexation benefits has added to their concerns. The industry is hoping for some respite from the government, and the proposed 'grandfathering clause' may provide some relief to stakeholders.
The government's decision on LTCG tax regime is expected to have a significant impact on the real estate sector. The industry is waiting with bated breath for the Finance Minister's response to the Finance Bill, which is expected to clarify the government's stance on this issue.
The real estate sector has been going through a tough phase, and the LTCG tax regime has added to their woes. The government's decision to offer some respite to the sector is likely to be welcomed by stakeholders.
The PHDCCI has been advocating for a more favorable tax regime for the real estate sector. The proposed changes to the LTCG tax regime are likely to benefit the sector, and the industry is hoping for a positive outcome.
The government's decision on LTCG tax regime is expected to have a significant impact on the real estate sector. The industry is waiting with bated breath for the Finance Minister's response to the Finance Bill, which is expected to clarify the government's stance on this issue.
The real estate sector has been impacted by the LTCG tax regime, and the government's decision to withdraw indexation benefits has added to their concerns. The industry is hoping for some respite from the government, and the proposed 'grandfathering clause' may provide some relief to stakeholders.
The impact of the LTCG tax regime on the real estate sector has been debated by industry stakeholders. The government's decision to offer some respite to the sector is likely to be welcomed by stakeholders.
PHD Chamber of Commerce and Industry (PHDCCI) is a leading industry chamber in India. The Chamber has been advocating for a more favorable tax regime for the real estate sector.
Frequently Asked Questions
What is LTCG tax regime?
LTCG tax regime refers to the tax regime applicable to long-term capital gains. The regime has been changed in the Finance Bill 2024, and the government has 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 impact of LTCG tax regime on real estate sector?
The LTCG tax regime has impacted the real estate sector, and the government's decision to withdraw indexation benefits has added to their concerns. The industry is hoping for some respite from the government, and the proposed 'grandfathering clause' may provide some relief to stakeholders.
What is the proposed 'grandfathering clause'?
The proposed 'grandfathering clause' is a provision that may allow transactions completed before July 2024 to continue benefiting from previous indexation rules. This clause may provide some relief to stakeholders in the real estate sector.
What is the stance of PHDCCI on LTCG tax regime?
PHDCCI has been advocating for a more favorable tax regime for the real estate sector. The Chamber has proposed to the Revenue Secretary that the old law may be retained or retained at least till March 31, 2025.
What is the expected outcome of the Finance Minister's response to the Finance Bill?
The Finance Minister's response to the Finance Bill is expected to clarify the government's stance on the LTCG tax regime. The industry is waiting with bated breath for the Minister's response, which is expected to have a significant impact on the real estate sector.
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