Government Offers Tax Relief Options for Real Estate Capital Gains

The government proposed a new tax relief for real estate capital gains, giving taxpayers the option to choose between tax rates of 20% with indexation or 12.5% without indexation for properties purchased before July 23, 2024. The changes are part of the Finance Bill, 2024.

The government on Tuesday introduced a significant relief measure for taxpayers dealing with capital gains on real estate properties. The new proposal allows taxpayers to choose between two tax rates: 20% with indexation and 12.5% without indexation.

According to the amendments circulated to Lok Sabha members as part of the Finance Bill, 2024, individuals or Hindu Undivided Families (HUF) purchasing houses before July 23, 2024, can opt for the 12.5% tax rate without indexation or continue with the 20% rate with indexation, whichever results in a lower tax amount.

This amendment aims to provide more flexibility and potential tax savings for property buyers, reflecting a strategic move to stimulate the housing market amidst economic fluctuations.

(With inputs from agencies.)