Government Gives Option to Calculate LTCG Tax on Properties, Pay Lower Tax
Individuals or HuF who purchased homes before July 23, 2024, may calculate their taxes under the new scheme [@13.5 percent without indexation] and the old scheme [@20 percent with indexation] and pay the tax that is lower of the two, according to the Finance Bill, 2024 amendments that were distributed to Lok Sabha members on Tuesday.
On Tuesday, the government announced a major tax break option that would allow homeowners who purchased homes prior to July 23, 2024, to select between two tax rates for long-term capital gains (LTCG) tax.
The LTCG was supposed to drop from 20 to 12.5% in the Budget 2024–25, however the indexation advantages were eliminated. The revised prices became operative on July 23, 2024. Taxpayers were able to calculate gains from the sale of capital assets after accounting for inflation thanks to the indexation advantage.
The LTCG tax burden would increase as a result of the Budget’s planned adjustments, according to tax specialists.
