Prahlad Raykar
Quick Summary
When there is sale of two Properties say Flats, during the FY 2024-25 one in June 2024 and one in Dec 2024, where both the property has LTCG if Indexation is not used, whereas if Indexation is used the first house property has a Long Term Capital Gain and Long term capital Loss. As per the current
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FAQ :
The amendments to Section 48 mean that after July 23, 2024, indexation benefits are no longer available for long-term capital assets.
The amendment to Section 112(1)(a) states that if the tax calculated without indexation is higher than the tax calculated with indexation, the excess tax will be ignored. This effectively means tax on any resulting capital loss will be nil.
No, due to the amendments, if a long-term capital loss arises from the use of indexation benefits, this loss is ignored and cannot be set off against other capital gains.
Yes, the second proviso to Section 112(1)(a) offers some relaxation specifically to individuals and HUFs, ensuring that if tax without indexation is higher, the excess is ignored.
July 23, 2024, is the date after which indexation benefits are generally not available for long-term capital assets as per the initial amendment to Section 48.
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