Old Properties held before 2001 to be given indexation benefit: FM Clarifies

With the proposal of indexation benefits taken away from long-term capital gain in Union Budget 2024, many were worried that it would lead to high tax rates, especially in the case of Old Properties and legacy homes.

In the press conference held after the Union Budget 2024, the Finance Secretary Dr T V Somnathan announced that the capital gains made on real estate now would be taxed at 12.5 percent instead of 20 percent. Additionally, the panel communicated that the indexation benefit offered until 2001 will be protected.

This news came as a sigh of relief.

The Budget 2024 was presented by our Finance Miniter Smt. Nirmala Sitaram today. The Budget 2024 proposes to make some major changes in the Taxation of Capital Gain Income. In Budget, the finance minister announced that Long-term capital gain (LTCG) under provisions of section 112 will be reduced to 12.5% from the present rate of 20%. However Indexation benefit will be taken away in this case.