Market News
2 min read | Updated on August 07, 2024, 10:06 IST
SUMMARY
The NIFTY Realty index was trading 1.1% higher, while the BSE Realty index was up 1%. Brigade Enterprises and Phoenix Mills Ltd were the only laggards.
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The Budget 2024-25 had proposed to lower the LTCG from 20% to 12.5% but removed the indexation benefits.
Realty stocks shot up on Wednesday after the Centre announced relief for taxpayers who bought their houses before July 23, 2024, by allowing them to choose between two tax rates for long-term capital gains (LTCG) tax.
The Budget 2024 had proposed lowering the LTCG to 12.5% from 20%, but the indexation benefits were removed. The new rates came into effect on July 23, 2024. The indexation benefit allowed individuals to compute gains from the sale of capital assets after adjusting for inflation.
Tax experts had said that the proposed changes in the Budget would raise the LTCG tax burden.
According to the amendments to the Finance Bill, 2024, individuals and Hindu Undivided Families (HuF) who bought houses before Budget 2024-24, i.e. July 23, have the option to compute their taxes under the new tax scheme, which offers a 12.5% tax rate without indexation, or the old scheme, which comes with a 20% tax rate with indexation.
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