Outlook Business Desk
The government plans to amend the Finance Bill to restore indexation benefits on long-term capital gains (LTCG) for real estate.
Finance Minister Nirmala Sitharaman mentioned in her Budget speech that long-term capital gains tax would be reduced from 20 per cent (with indexation) to 12.5 per cent (without indexation).
Under indexation, the effect of inflation is taken into consideration while adjusting the purchasing price of an investment.
Now under the proposed amendment, property owners will have the ability to choose between paying 12.5 per cent LTCG without indexation or 20 per cent with indexation.
Following this, the industry has praised the move of the government and said that this would give relief to the middle class.
Discussions on the Finance Bill are already underway in the Lok Sabha. Once the bill is passed, the Budget process will be completed.