No Major Impact on Sales: DLF's Take on Indexation Benefit Removal
DLF says removal of indexation benefit will not affect sales, despite concerns from real estate experts.
Real EstateCapital Gains TaxIndexation BenefitDlf LimitedUnion Budget 2024Real Estate NewsJul 26, 2024
However, Delhi NCR-based listed real estate developer DLF Limited has expressed a contrarian view. The company's MD and CEO, Ashok Tyagi, stated in an investors' call that the removal of indexation benefits will not have a major impact on sales. According to Tyagi, the change in the capital gains tax regime will not significantly affect the sales behavior in the real estate sector.
This statement comes despite concerns from real estate experts that the new norms may take a toll on the sales in the sector. The removal of indexation benefits is expected to increase the tax liability for investors, which may discourage them from investing in the real estate sector.
DLF Limited has reported a 23% YoY jump in its net profit to Rs 646 crore for the quarter ended June 30, 2024. The company has also given a sales guideline of Rs 17,000 crore for the financial year 2024-25. DLF's sales bookings have jumped over three-fold to Rs 6,404 crore during the first quarter of this fiscal.
The company's optimistic outlook on sales is in contrast to the concerns raised by real estate experts. Experts believe that the new norms may benefit those who are investing in high-growth markets, but may negatively impact those who are buying properties for end-use or moderate capital gains.
Information
DLF Limited is India's largest realty firm, with a presence in Delhi NCR, Chennai, and other cities. The company has developed several iconic projects, including residential, commercial, and retail spaces.
DLF Limited is a leading real estate developer in India, with a strong track record of delivering quality projects. The company is known for its commitment to excellence and customer satisfaction.
Frequently Asked Questions
What was announced in the Union Budget 2024 regarding capital gains tax on real estate transactions?
The Finance Minister announced a reduction in the long-term capital gains tax on real estate transactions from 20% to 12.5%.
What is the impact of removing the indexation benefit on real estate investors?
The removal of indexation benefits is expected to increase the tax liability for investors, which may discourage them from investing in the real estate sector.
How has DLF Limited's sales performance been in the first quarter of this fiscal?
DLF's sales bookings have jumped over three-fold to Rs 6,404 crore during the first quarter of this fiscal.
What is DLF Limited's sales guideline for the financial year 2024-25?
The company has given a sales guideline of Rs 17,000 crore for the financial year 2024-25.
Who may benefit from the new capital gains tax regime?
Experts believe that those who are investing in high-growth markets may benefit from the new norms.
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