Government's LTCG Tax Amendment to Boost Homebuyer Confidence and Revitalise Real Estate Market
The government's recent amendment to the Long-Term Capital Gains (LTCG) tax has been hailed as a game-changer for the real estate sector.
Ltcg TaxReal EstateHomebuyersInvestmentTax ReliefGovernment AmendmentReal Estate NewsAug 07, 2024
The amendment, which applies to the transfer of long-term capital assets such as land or buildings acquired before July 23, 2024, enables taxpayers to choose the lower tax burden between the new and old schemes. This move is expected to drive investment and enhance sales across housing segments.
According to industry experts, the reinstatement of indexation is expected to have a significant impact on the real estate market. Dhruv Agarwala, Group CEO, Housing.com & Proptiger.com, believes that this move prevents potential negative impacts on market sentiment and growth in India's second-largest employment-generating sector.
The confusion among homebuyers is expected to be addressed now, and the reinstatement of indexation is expected to lead to increased real estate investment, contributing to a 0.5-1% increase in GDP growth. Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO-Maharashtra, points towards the benefits of the latest move, stating that it will make property transactions more lucrative for sellers by reducing their tax burden.
Niranjan Hiranandani, Chairman of the Hiranandani Group and industry body NAREDCO, applauded the Finance Minister for the amendments proposed in the finance bill. He believes that this relief applies to the transfer of long-term capital assets and will drive investment and enhance sales across housing segments.
The real estate players and industry experts are hailing the move as a significant step forward, which will lift confidence of homebuyers and lift the overall industry. With this amendment, the government has addressed concerns and provided stability to the sector, making it more attractive for investors.
Frequently Asked Questions
What is the amendment to the LTCG tax?
The amendment reinstates indexation benefits for long-term capital gains on real estate properties.
How will the amendment impact the real estate market?
The amendment is expected to drive investment and enhance sales across housing segments, contributing to a 0.5-1% increase in GDP growth.
What are the benefits of the amendment for homebuyers?
The amendment will make property transactions more lucrative for sellers by reducing their tax burden, thus enabling them to retain more of their sale proceeds.
Who has hailed the amendment as a game-changer for the real estate sector?
The government's decision to reinstate indexation benefits has been hailed as a game-changer by industry experts and real estate players, including Niranjan Hiranandani, Chairman of the Hiranandani Group and industry body NAREDCO.
What is the expected impact of the amendment on the overall industry?
The amendment is expected to lift confidence of homebuyers and lift the overall industry, making it more attractive for investors.
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