CAPITAL GAIN IN NEW REGIM

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Following the July 2024 budget, selling residential property purchased before 23.07.2024 offers a choice between the old and new tax regimes for capital gains. While indexation benefits are available in both, you must select one regime for all your income declarations, including business and rental income. It's not possible to use different regimes for capital gains and other income.

ESMAIL SITABKHAN

ESMAIL SITABKHAN (Querist)
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04 February 2025 There is a sale of residential property in current year after July 2024 budget which was purchased in year 2001 if we take benefit of COI(i.e. old regim) then other income such as business income , rent income etc. can be shown in new regim scheme???. I understand that there is no connection between the selection of regim for calculatioin of capital gain tax in new and old regim and rest of income under old or new regim.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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04 February 2025 The indexation benefit is available in both regime. You can file ITR in any one regime for all income declarations. If you have business income you cannot change regime every year.

ESMAIL SITABKHAN

ESMAIL SITABKHAN (Querist)
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06 February 2025 Sir Indexation is abolished??? only in old regim they have given indexation with tax rate of 20% and in new regim 12.5 % without indexation. please guide me if i am wrong

ESMAIL SITABKHAN

ESMAIL SITABKHAN (Querist)
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06 February 2025 and can we choose different regim for Capital gain and different for other income??

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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06 February 2025 For properties purchased before 23.07.2024, either of the option is available for resident Indians.
You cannot choose both option simultaneously. Choose either old or new for all the income declaration.
Refer: https://www.taxscan.in/indexation-of-capital-gains-benefit-available-only-for-real-estate-and-for-resident-individuals-and-hufs-no-loss-set-off/426885/

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