Finance Minister Nirmala Sitharaman can table the amendment in the Lok Sabha on Wednesday after a motion on the Finance Bill 2024 is opened for a debate.
The government, in a major break for property owners on Tuesday, unveiled an amendment to the long-standing capital gains tax on property, called the long-term capital gains (LTCG) tax, which will let the taxpayer select the lever of 12 percent tax on the gains: 5 percent non-indexed or a graduated 20 percent indexed properties that were purchased before July 23, 2024.
In the proposed amendment, any taxpayer who sold any asset, including the building and land, before the 23rd of July has the opportunity of choosing either to operate under the new law or under the old law, which would allow the taxpayer to get the one that is least burdensome as per the tax implication.
Real estate owners got a huge respite on Tuesday as the government proposed to change the long-term capital gains (LTCG) structure of tax, which will let the taxpayers avail between a lower tax rate of 12% without indexation or a special rate of 20% with indexation for the properties that were purchased before the certain date of July 23, 2024.
Thus, according to the proposed amendment, any taxpayer who sold any property—a house, a building, a piece of land, etc.—before July 23, 2015 has the right to choose either the old law that gives him more opportunities to reduce the amount of tax or a new law.
