Market News
2 min read | Updated on July 23, 2024, 18:06 IST
SUMMARY
As per the changes proposed in the Budget, long-term capital gains tax (LTCG) on assets like property and gold will be reduced to 12.5% without indexation benefits against the existing rate of 20% with indexation.
The short-term capital gains tax rate on assets like property and gold remains unchanged.
Shares of real estate developers ended lower on Tuesday after the Union Budget 2024 removed the indexation benefit for the sale of property. Indexation is used to allow property owners to adjust the purchase price for inflation.
As per the changes proposed in the Budget, long-term capital gains tax (LTCG) on assets like property and gold will be reduced to 12.5% without indexation benefits against the existing rate of 20% with indexation.
"With the rationalisation of rate to 12.5%, indexation available under the second proviso to Section 48 is proposed to be removed for calculation of any long-term capital gains which is presently available for a property, gold and other unlisted assets. This will ease computation of capital gains for the taxpayer and the tax administration," the Budget document said.,
The short-term capital gains tax (STCG) rate on these assets remains unchanged, it added.
Deepak Shenoy, founder and chief executive officer (CEO) of Capital Mind, said that no indexation will have "huge implications" for the property.
"People who have held for 15 years and seen their prices double or such, would otherwise have not paid any capital gains tax due to indexation," he said on X.
About The Author
Next Story