The government, in what is seen as relief to middle-class taxpayers, moved an amendment to provide relief to real estate under the Long Term Capital Gains or LTCG, regime. The government said that it will allow taxpayers to avail themselves of either a lower rate of 12.5 per cent without indexation or a higher 20 per cent rate with indexation for property acquired before July 23, 2024.
Budget Proposal accepted on Long Term Capital Gain for real estate – tax Payers given an option to either avail lower rate without indexation or higher rate with indexation. #LokSabha pic.twitter.com/1ROqq7Gl4z
— Saptagiri Ulaka (@saptagiriulaka) August 6, 2024
Major relief proposed in the Finance Bill in respect of taxation of immovable property. In the case of the 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…
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This has elicited some positive responses from many; some of them even called it a victory for the middle class or taxpayers. This, as, the tweaks that were introduced in the budget, were criticised by many, who claimed that the middle class was left high and dry in the budget.
Following the news, many have welcomed this move and claimed that it would bring some relief to taxpayers. One user deemed this a game-changer and said, “This is a game-changer for taxpayers! The Finance Bill’s new provision lets individuals and HUFs choose the lower tax rate for long-term capital assets. It’s a smart, fair move that significantly benefits those transferring immovable property.”
While I have read a few headline which says Govt rolls back Indexation proposal and similar things… If you see the amendment to the amendment … that is not what they have done!!
They have done something very fair while sticking to their decision to bring parity in asset… pic.twitter.com/aMpjbEutz1
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Another user added, “It is a very fair way to have acted upon the feedback!”
This small relief comes amid certain budget announcements, including increased taxes on STCG and income tax tweaks, that resulted in a disillusioned response from many corners.
I am glad that the Hon’ble Finance Minister has restored Indexation benefit for Investors on Immovable Property.
From the 23rd day of July 2024, the day the budget was presented, I have been unequivocally saying that the removal of Indexation would be the biggest blow to Indian… pic.twitter.com/Hmsp7UAbsF
— Raghav Chadha (@raghav_chadha) August 6, 2024
Opposition figures like AAP’s Raghav Chadha also shared their thoughts on the matter and said, “I am glad that the Hon’ble Finance Minister has restored Indexation benefit for Investors on immovable Property.”
Nevertheless, he did add a caveat to the development and said that this is only a partial relief. He further raised concern and said, “However, the Govt has partially restored Indexation, not fully restored. I have two more suggestions to offer in this regard which would enable a full restoration of Indexation benefit”
