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NEW DELHI: Union finance minister Nirmala Sitharaman on Wednesday introduced amendments relating to the Lengthy-Time period Capital Good points (LTCG) tax proposal on actual property throughout a debate on the Finance Invoice in Lok Sabha.
Taxpayers will now have the selection to calculate their tax legal responsibility utilizing both the previous system or the diminished charges with out indexation, and pay the decrease of the 2 quantities.The rollover profit will nonetheless be obtainable for many who buy new immovable property utilizing the capital beneficial properties from the sale of previous property.
The Union Finances 2024-25 offered on July 23, proposed a diminished LTCG tax fee of 12.5 %, down from 20 %, whereas eliminating the indexation profit. This proposal confronted vital criticism from numerous stakeholders, together with opposition events and tax professionals.
A key modification within the Invoice addresses the restoration of indexation profit for properties bought earlier than July 23, 2024. People or Hindu Undivided Households (HuFs) who acquired homes previous to this date can now select between paying LTCG tax on the new fee of 12.5 % with out indexation or claiming the indexation profit and paying a 20 % tax.
The finance minister had mentioned that the indexation profit was proposed to be eliminated within the Finances to carry all asset lessons underneath one fee and to not improve income.
Taxpayers will now have the selection to calculate their tax legal responsibility utilizing both the previous system or the diminished charges with out indexation, and pay the decrease of the 2 quantities.The rollover profit will nonetheless be obtainable for many who buy new immovable property utilizing the capital beneficial properties from the sale of previous property.
The Union Finances 2024-25 offered on July 23, proposed a diminished LTCG tax fee of 12.5 %, down from 20 %, whereas eliminating the indexation profit. This proposal confronted vital criticism from numerous stakeholders, together with opposition events and tax professionals.
A key modification within the Invoice addresses the restoration of indexation profit for properties bought earlier than July 23, 2024. People or Hindu Undivided Households (HuFs) who acquired homes previous to this date can now select between paying LTCG tax on the new fee of 12.5 % with out indexation or claiming the indexation profit and paying a 20 % tax.
The finance minister had mentioned that the indexation profit was proposed to be eliminated within the Finances to carry all asset lessons underneath one fee and to not improve income.
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