Business

Government Proposes Amendment To Provide Relief For Real Estate Under LTCG Regime

The government has introduced an amendment to offer tax relief for real estate transactions under the Long-Term Capital Gains (LTCG) regime. This proposed change allows taxpayers to choose between two tax options for properties acquired before July 23, 2024.

Under the new scheme, taxpayers can opt for a reduced tax rate of 12.5% without indexation on long-term capital assets such as land or buildings. Alternatively, they can stick with the existing scheme, which imposes a 20% tax rate with indexation. Taxpayers will have the flexibility to calculate their tax liability under both schemes and pay the lower amount.

This amendment aims to provide significant relief to individuals and Hindu Undivided Families (HUFs) who transfer long-term capital assets acquired before the specified date. By allowing a choice between a lower rate without indexation and a higher rate with indexation, the government hopes to ease the tax burden on property transactions.

The relief is intended to make real estate investments more attractive by reducing the financial impact of capital gains taxes. It also offers taxpayers a strategic advantage, enabling them to choose the tax option that results in a lower tax liability.

This proposal is a part of the government’s broader effort to support the real estate sector and incentivize long-term investments. The amendment could potentially impact a wide range of real estate transactions and provide financial relief to many property owners and investors.

The new tax provisions will apply to properties transferred from July 23, 2024, onwards. Taxpayers should evaluate both schemes to determine which option benefits them the most.

Also Read: Court Records Testimony In Sexual Harassment Case Against Former WFI Chief Brij Bhushan Sharan Singh

Ajaypal Choudhary

Recent Posts

Amitabh Bachchan Celebrates Son Abhishek’s Silver Jubilee In Bollywood

Amitabh Bachchan marked the 25th anniversary of Abhishek Bachchan’s cinematic journey with a heartfelt message…

40 mins ago

How Light Exposure In The Morning Affects Your Sleep Quality

Morning exposure to natural light plays a vital role in regulating your circadian rhythm &…

1 hour ago

Stampede During Jagannath Rath Yatra In Puri Claims Three Lives

Three devotees, including two women, lost their lives and ten others were injured in a…

1 hour ago

Odisha CM & Gautam Adani Discuss Future-Ready Infrastructure

Gautam Adani visits to Chief Minister Mohan Charan Majhi at State House of Odisha to…

1 hour ago

Earthquake Of Magnitude 5.3 Shakes Punjab Region Of Pakistan

A shallow 5.3-magnitude earthquake struck central Pakistan’s Punjab province early on Sunday, with tremors felt…

2 hours ago

Gautam Adani Hails Puri Lifeguards As Unsung Heroes During Rath Yatra Visit

Gautam Adani, Chairman of the Adani Group, visited Puri in Odisha during the annual Rath…

12 hours ago