​Removal of Indexation Benefit

The Union Budget 2024-25 proposed to change the long-term capital gains (LTCG) tax rate on the sale of property.

Changes Made

  • Elimination of Indexation Benefit: The Budget 2024-25 eliminated the indexation benefit, which previously enabled property owners to adjust their purchase price for inflation, thereby reducing taxable profits.
  • 12.5% without Indexation Benefit: Before the Budget 2024-25, the government taxed long-term capital gains (LTCG) from property sales at 20% with indexation benefits.
  • Now, properties purchased from 2001 onwards will now incur a 12.5% LTCG tax upon sale.

Impact

  • Increase Tax Obligations: The updated tax regulations will increase tax obligations related to ....

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