Big Relief For Property Owners As Govt Likely To Amend Indexation Proposal On Real Estate

Under the proposed amendment, home owners, planning to sell their property bought before July 23, 2024 (Union Budget 2024-25 announcement day), can choose between the new and old tax regimes, whichever results in a lower tax liability.

Under the new long-term capital gains (LTCG) tax regime, the tax rate is set at 12.5 per cent without the benefit of indexation. Conversely, the old regime imposes a 20 per cent tax but allows for indexation benefits.

Meanwhile, on the bourses, the Nifty Realty index surged 3.3 per cent to 1,034.2 levels in intraday trade.