https://www.desidime.com/comments/permalink/10220904
Possible outcome of LTCG on realestate
- 1522
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Hey guys as youre all aware that recent changes in budget brought in LTCG on Real estate So whats your take on what are tge implications
my view is now real estate is on par with equity in taxation so that more financial assets are favoured over real estate
AND OWNING A HOUSE is a dream for most people & Mostly biggest financial EXPENDITURE of thier life ( I CLEARLY SEE IT AS EXPENDITURE as you can't sell the primary occupying house -if sold need to spend again & you don't earn anything from that but have expenses instead)
So it's a very important topic to adress that's why this post
i understand that majority of REAL ESTATE transaction go through under valuation on govt records -no transparency on valuation -dealt under the table -use black money -mostly cash transactions
but things going ahead may change that because as housing for all is clear long term requirement in either rental -lease -co operative -company owned -outright owned & given the data on housing sector there are atleast 40crore houses in india which are liveable (although much of them maybe lacking many basics like fire safety-lack of clear ownership -clearance etc ) which if taken @ 5 /household can accomodate 100 crore population and indias population is 140+ crore if going by past construction pace on a conservative estimate we can build 10crore homes in 10yrs so that every indian can have a house for his family
given above situation & taxation much of the issues can be solved with right mindset & right incentives from govt & society at large whats you view
lets have healthy debate on this
thank you in advance
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https://www.desidime.com/comments/permalink/10220922
My major hesitation in this case is LITIGATION as many from powerful categories including political masters -celebrity -Underworld -drug lords -liquor business -industrialists everyone has vested interests in holding this back
https://www.desidime.com/comments/permalink/10220977
The maximum litigation that could be put up is that indexation shall be made available uptil today. That is also not likely because govt would say that they have reduced tax rate to incorporate that.
Apart from that there is no point of litigation because govt has ultimate authority to make amy kind of changes in income tax. Even if they make it 50% , there is no case for litigation.
View 11
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https://www.desidime.com/comments/permalink/10220982
I made some rough calculations and difference in old system and new system isnt coming to be that significant in terms of net tax outflow.
Only difference is that capital gains have multiplied 2 or 3 times. So those seeking exemption would have to invest higher amounts. I think thats what the govt wants.
https://www.desidime.com/comments/permalink/10220990
Are LTCG exemption schemes like 54EC bonds etc still there or are they also removed?
View 8
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https://www.desidime.com/comments/permalink/10221032
One doubt, what is % of tax we have to pay for selling agriculture land?
https://www.desidime.com/comments/permalink/10221059
I don't see much difference...
Pre budget Real-estate have 20% tax on long term..plus Indexation benefit .(Close to inflation rates..)
Post budget it's now 12.5% without Indexation benefits..
Overall tax won't change much.. it's just getting simplified
https://www.desidime.com/comments/permalink/10221077
hmm sadly i am not that much good at land real estate I am new to this real estate section (I have family land but i dont do real estate till now) or else i would put my opinion:)
but one thing is sure in real estate is if you can safely buy a land its an asset you shounld't sell, as its for your grand children:)) since its gonna be valued a lot in future
as real estate will shine more in upcoming years due to supply demand from population growth till 2062
as i am sure in future people will have population issue till 2062 year or so as some research (i forgot) claimed that Indian's population will grow till 2062 so till then real estate is unstoppable
even if the return rate is low in real estate now, it wont go negative till 2062 in my personal opinion
https://www.desidime.com/comments/permalink/10221078
View 4
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https://www.desidime.com/comments/permalink/10221309
If Modi or similar honest Prime Minister remains for next few decades, everyone will have a house and a quality life.
Real estate prices are inflated because of Black money, Black money comes from corruption, illegal acitvities.
As the policies are formed to reduce corruption through digitisation of land records, digitising and recording all other activities and use AI in most places, wherever possible, it will certainly help reduce corruption/blackmoney/Tax-evasion/..etc thus more income for Govt. then inflation can be kept low and tax burden on commom people can also be reduced.
https://www.desidime.com/comments/permalink/10221352
How high are you, dude? Whichever government comes, black money is here to stay, it's only a hard working middle class who gets royally mistreated every time.
View 3
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https://www.desidime.com/comments/permalink/10221429
For commonman, there may not be much difference as most people buy real estate for their own consumption. And there is still no tax if the money is used for "upgrade" i.e. selling and then within a short time buying the better/costlier property with the sale proceeds.
https://www.desidime.com/comments/permalink/10221442
Yes that's true of large majority but the supply side was crowded by HNI-builder -political parties -mafias taking real estate properties as investment & raking up the prices by crowding out lot of end use consumers.....by this they're at disadvantage due to economic liability by tax may fix this thereby reduction in prices
But this is mostly true across country including rural but at a lower level.....So end consumer may benifit due to affordable prices
https://www.desidime.com/comments/permalink/10221742
This is the real case scenario chart of how LTCG changes impact vis-a-vis old indexation benifit one
NOT particular to REAL ESTATE but since all are brought up to same treatment so applies across including mf -equity etc
View 8
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https://www.desidime.com/comments/permalink/10221937
Outcome 1: Dishonest income will flow into other areas instead of real estate & thus result in reduction of speculation making it less difficult for people who could not afford a home. MASSES WILL BUY HOUSES AS ROOF OVER HEAD & NOT PROFITS.
Outcome 2: Corruption + Dishonesty will increase and dishonest people will add indexation to dishonesty by taking into account the loss due to removal of indexation in real estate. SPECULATORS will still stay and decrease the time to burst the already inflated real estate BUBBLE.
REGARDLESS HOUSE IS BASIC NEED & GOVT HAS TAKEN STEP IN THE RIGHT DIRECTION TO STOP SPECULATION. Plus this step will also help the poor tenants as rental yields are tied to property valuation.
majority of masses in India be struggling to afford 3 meals a day forget roof over head.
tea-seller knows the struggle is real, so be making things right
Hoping next budget PMO introduces annual ONE NATION ONE PROPERTY HOLDING TAX SLABS on property based on the market value.
Inshort tea seller wants you to work hard and/or invest/start ur own SMEs instead of earning lethargic money from real estate gains, house rents etc. Take you asrhes to outside and work hard like everybody else
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One doubt, what is % of tax we have to pay for selling agriculture land?
Rural agri land is tax free.
Urban can be made tax free through exemptions. Sell urban agri land, buy rural agri land, then sell rural agri land.
Take consultation from tax consultant who deals with such things.
If Modi or similar honest Prime Minister remains for next few decades, everyone will have a house and a quality life.
Real estate prices are inflated because of Black money, Black money comes from corruption, illegal acitvities.
As the policies are formed to reduce corruption through digitisation of land records, digitising and recording all other activities and use AI in most places, wherever possible, it will certainly help reduce corruption/blackmoney/Tax-evasion/..etc thus more income for Govt. then inflation can be kept low and tax burden on commom people can also be reduced.
If Modi or similar honest Prime Minister remains for next few decades, everyone will have a house and a quality life.
Real estate prices are inflated because of Black money, Black money comes from corruption, illegal acitvities.
As the policies are formed to reduce corruption through digitisation of land records, digitising and recording all other activities and use AI in most places, wherever possible, it will certainly help reduce corruption/blackmoney/Tax-evasion/..etc thus more income for Govt. then inflation can be kept low and tax burden on commom people can also be reduced.
How high are you, dude? Whichever government comes, black money is here to stay, it's only a hard working middle class who gets royally mistreated every time.