{"id":27159,"date":"2024-08-07T14:31:45","date_gmt":"2024-08-07T09:01:45","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=27159"},"modified":"2024-08-08T23:37:51","modified_gmt":"2024-08-08T18:07:51","slug":"revises-ltcg-indexation-budget-proposal","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/revises-ltcg-indexation-budget-proposal\/","title":{"rendered":"FM Revises LTCG Indexation Budget Proposal on Real Estate"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d619860801d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d619860801d\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/revises-ltcg-indexation-budget-proposal\/#Ministry_of_Finance_Revises_LTCG_Indexation_Budget_Proposal_on_Real_Estate\" title=\"Ministry of Finance Revises LTCG Indexation Budget Proposal on Real Estate\">Ministry of Finance Revises LTCG Indexation Budget Proposal on Real Estate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/revises-ltcg-indexation-budget-proposal\/#Finance_Minister_Proposes_Amendments_to_Finance_Bill_for_Real_Estate_Capital_Gains_Tax_Calculation\" title=\"Finance Minister Proposes Amendments to Finance Bill for Real Estate Capital Gains Tax Calculation\">Finance Minister Proposes Amendments to Finance Bill for Real Estate Capital Gains Tax Calculation<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/revises-ltcg-indexation-budget-proposal\/#Proposed_Amendments_Finance_Bill_for_Real_Estate_Capital_Gains_Tax_Calculation\" title=\"Proposed Amendments Finance Bill for Real Estate Capital Gains Tax Calculation : \">Proposed Amendments Finance Bill for Real Estate Capital Gains Tax Calculation : <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27179\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/photo_2024-08-08_23-35-59.jpg\" alt=\"LTCG Indexation Budget Proposal on Real Estate\" width=\"1080\" height=\"1272\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/photo_2024-08-08_23-35-59.jpg 1080w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/photo_2024-08-08_23-35-59-255x300.jpg 255w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/photo_2024-08-08_23-35-59-869x1024.jpg 869w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/photo_2024-08-08_23-35-59-768x905.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/08\/photo_2024-08-08_23-35-59-800x942.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Ministry_of_Finance_Revises_LTCG_Indexation_Budget_Proposal_on_Real_Estate\"><\/span><span style=\"color: #000080;\"><strong>Ministry of Finance Revises LTCG Indexation Budget Proposal on Real Estate<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For properties acquired on or before 23rd July 2024, taxpayers will have the option to choose between the new method (12.5% without indexation) or the old method (20% with indexation). The excess tax payable under the new law over what would have been payable after indexation under the old law will be ignored. This implies that the long-term capital gains tax on the transfer of land and buildings acquired before 23rd July 2024 will be the lower of the tax computed under the new law (12.5% without indexation) and the tax computed under the old law (20% with indexation).<\/p>\n<p>This option is available only for resident individuals and HUFs. For non-resident individuals, companies, partnership firms, LLPs, etc., the benefit of indexation for properties acquired before 23rd July 2024 will not be available.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Finance_Minister_Proposes_Amendments_to_Finance_Bill_for_Real_Estate_Capital_Gains_Tax_Calculation\"><\/span><span style=\"color: #000080;\"><strong>Finance Minister Proposes Amendments to Finance Bill for Real Estate Capital Gains Tax Calculation<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Finance Minister Nirmala Sitharaman has introduced amendments to the Finance Bill, aimed at providing greater flexibility to real estate investors in calculating Long-Term Capital Gains tax for properties acquired on or before July 23, 2023. This move is designed to offer taxpayers more options and potentially reduce their tax burden.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Proposed_Amendments_Finance_Bill_for_Real_Estate_Capital_Gains_Tax_Calculation\"><\/span><span style=\"color: #000080;\"><strong>Proposed Amendments Finance Bill for Real Estate Capital Gains Tax Calculation : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Under the revised proposal, taxpayers will have the option to choose between two methods for calculating their Long-Term Capital Gains:<\/p>\n<ol>\n<li><strong>New Method:\u00a0 Long-Term Capital Gains &#8211;<\/strong><strong>Flat Rate of 12.5%<\/strong>: Taxpayers can opt to pay a flat 12.5% tax on their long-term capital gains. This method simplifies the calculation and may lower the tax burden for some taxpayers.<\/li>\n<li><strong>Old Method: Long-Term Capital Gains @<\/strong><strong>20% with Indexation<\/strong>: This Long-Term Capital Gains method allows taxpayers to adjust the purchase price of their property based on inflation, thus reducing the taxable gain. Taxpayers will then pay a Long-Term Capital Gains 20% tax on the indexed gains. This approach can potentially lower the overall Long-Term Capital Gains tax liability.<\/li>\n<\/ol>\n<p><strong><span style=\"color: #000080;\">Ministry of Finance Revises Long-Term Capital Gains Indexation Budget Proposal\u00a0 Clarifying more\u00a0<\/span><\/strong><\/p>\n<ul>\n<li>First calculate CG at 12.5%<\/li>\n<li>Then CG with indexation at 20%<\/li>\n<li>If 1 exceeds 2 then excess to be ignored<\/li>\n<\/ul>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27155\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/WhatsApp-Image-2024-08-07-at-1.50.19-PM.jpeg\" alt=\"LTCG\" width=\"1277\" height=\"784\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/WhatsApp-Image-2024-08-07-at-1.50.19-PM.jpeg 1277w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/WhatsApp-Image-2024-08-07-at-1.50.19-PM-300x184.jpeg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/WhatsApp-Image-2024-08-07-at-1.50.19-PM-1024x629.jpeg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/WhatsApp-Image-2024-08-07-at-1.50.19-PM-768x472.jpeg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/WhatsApp-Image-2024-08-07-at-1.50.19-PM-800x491.jpeg 800w\" sizes=\"(max-width: 1277px) 100vw, 1277px\" \/><\/h2>\n<p><strong>Important Considerations : <\/strong>These options are available only for properties acquired on or before July 23, 2023.\u00a0The new proposal is currently subject to approval by the Parliament. The benefit of choosing between these methods is limited to resident individuals and HUFs. Non-resident individuals, companies, partnership firms, and LLPs will not have access to the indexation benefit for properties acquired before the specified date.<\/p>\n<p><strong>Action for Taxpayers :\u00a0<\/strong>Taxpayers are advised to stay informed about the progress of these amendments and consult with their financial advisors or tax consultants to prepare for any potential changes. Understanding these options will help in making informed decisions regarding capital gains tax calculations on real estate properties.<\/p>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-27123\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/equity-tax-aross-world-.jpg\" alt=\"What is Equity \/ Capital Gains Tax in India &amp; Across the world?\" width=\"993\" height=\"1141\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/equity-tax-aross-world-.jpg 993w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/equity-tax-aross-world--261x300.jpg 261w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/equity-tax-aross-world--891x1024.jpg 891w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/equity-tax-aross-world--768x882.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2024\/07\/equity-tax-aross-world--800x919.jpg 800w\" sizes=\"(max-width: 993px) 100vw, 993px\" \/><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>Ministry of Finance Revises LTCG Indexation Budget Proposal on Real Estate For properties acquired on or before 23rd July 2024, taxpayers will have the option to choose between the new method (12.5% without indexation) or the old method (20% with indexation). The excess tax payable under the new law over what would have been payable &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[150],"tags":[6017],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27159"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=27159"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27159\/revisions"}],"predecessor-version":[{"id":27180,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/27159\/revisions\/27180"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=27159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=27159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=27159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}