Big News:- Centre makes revisions in LTCG indexation on real estate.

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Big relief for home buyers: Centre makes revisions in LTCG indexation on real estate. Details inside

In a big relief for home buyers, the government has amended the Long-Term Capital Gains (LTCG) regime for real estate, allowing taxpayers to choose between a lower tax rate of 12.5% without indexation or a higher rate of 20% with indexation for properties acquired before July 23, 2024, enabling individuals or Hindu Undivided Families (HuFs) to compute their taxes under both schemes and pay the lower amount.

https://www.businesstoday.in/personal-finance/r...

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earlier LTCG was 10% with indexation benefit
Deal Subedar Deal Subedar
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this is not equity, real estate was 20% + indexation earlier also.
Maidm ji changed everything to 12.5% w/o indexation
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earlier LTCG was 10% with indexation benefit
Deal Subedar Deal Subedar
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this is not equity, real estate was 20% + indexation earlier also.
Maidm ji changed everything to 12.5% w/o indexation
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its not a relief. to actually get benefit from 20% LTCG with indexation benefit, you will have to book LTCG after approx 10 years
Deal Subedar Deal Subedar
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This is how it should be, New policy should not affect people who bought something considering the old policy. 
At least now people can choose old vs new

Deal Cadet Deal Cadet
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Then in that cas e, LTCG for equity should be 10% till JUl 23 2024 after than 12.5% na smile, if retrospective tax too be skipped.

Similaryly, STCG should be 15% for equity sole before Jul 23 2024,then 20%. Will govt. do that change? smile
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Comrade Comrade
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kuch bhi ho bali to common people ki honi ha or usma bhi medium family rage rage rage

Deal Subedar Deal Subedar
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This acquired date clause is registration date, i assume, right?

Pro Community Angel Pro Community Angel
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This is grey area. If you can prove that you made payment for the property before, still you can take the benefit.

Date of acquistion is basically date of possession. Which can occur even before registration.

In practical life, all these dates are highly manipulated and income tax is least bothered by these "small" things

Benevolent Benevolent
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this image summarized this thing well 

image

Pro Community Angel Pro Community Angel
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I doubt what input the rbi index is using. Its awfully wrong.

Any kind of economic analysis doesnt work in indian real estate market because they only consider official rates

Deal Lieutenant Deal Lieutenant
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Excerpts fromthe article:  "In the case of transfer of a long-term capital asset, being land or building or both, by an individual or HuF, which is acquired before the 23rd day of July, 2024, the taxpayer can compute his taxes under the new scheme [@12.5% without indexation] and old scheme [@20% with indexation] and pay such tax which is lower of the two."

This is the post highlight 



Actually the logic of LTCG that should be applied is (if you done the calculation you will know this)

a) for appreciation of property above 7% CAGR approx. 12.5% without indexation is better:)

b) for appreciation of property below 7% CAGR approx. 20% with indexation is better:)

but good that before July 23rd 2024 anyone can use any scheme of 12.5% or 20%.. which is a good move

Generous Generous
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Bhai maine to half payment kar rakhi hai.. half bachi hai.

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Good News

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