Tax Relief on Real Estate: Govt Offers Option to Calculate Capital Gains Tax
The government has proposed significant relief for taxpayers in terms of capital gains tax on real estate properties, giving them the option of paying a 20 per cent tax rate with indexation or a 12.5 per cent tax rate without indexation.
Capital Gains TaxReal EstateTax ReliefFinance Bill 2024Budget 2024 25Real Estate MumbaiAug 06, 2024
According to the amendments to the Finance Bill, 2024, circulated to Lok Sabha members, an individual or HUF purchasing a home before July 23, 2024, can compute his taxes under the new scheme of 12.5 per cent without indexation and the old scheme of 20 per cent with indexation, and pay the lower of the two.
The LTCG-related announcements made in the Budget are thought to have been significantly rolled back by these revisions.
Congress MP Amar Singh attacked the Union Budget for 2024–25 in the Lok Sabha, saying it fails to address unemployment, raises household out-of-pocket costs, and provides no help to the middle and salaried classes.
Singh asked the finance minister to increase public consumption and decrease poverty by exempting incomes up to Rs 5 lakh. He questioned the efficiency of corporate tax breaks in creating jobs, pointing out that India needs to create over 7.85 million jobs a year in the non-farm sector until 2030, according to the Economic Survey.
Singh also brought up the fact that household savings have fallen to an all-time low of 18.3 per cent and financial liabilities are at an all-time high, indicating a burden on daily spending. In addition, he voiced concerns about the 10% food inflation rate and the poor yield from agriculture, even though 50 per cent of the population depends on it.
The Finance Bill, 2024, is a significant piece of legislation that outlines the government's financial policies and proposals for the upcoming year.
Frequently Asked Questions
What is the new tax rate for capital gains on real estate properties?
The new tax rate is 12.5 per cent without indexation or 20 per cent with indexation.
Who is eligible for this tax relief?
Individuals or HUFs who purchased a home before July 23, 2024.
What is the main criticism of the Union Budget for 2024-25?
It fails to address unemployment, raises household out-of-pocket costs, and provides no help to the middle and salaried classes.
What is the recommended solution to address poverty and unemployment?
Increasing public consumption and decreasing poverty by exempting incomes up to Rs 5 lakh.
What is the current state of household savings and financial liabilities in India?
Household savings have fallen to an all-time low of 18.3 per cent and financial liabilities are at an all-time high.
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