I would like to know if the government has provided taxpayers with the option to compute taxes on real estate transactions involving properties purchased before July 23, 2024, using either the new 12.5% rate without indexation or the previous 20% rate with indexation.
Yes, for resident individual & HUFs.
Where can I find the amendment notification. My land sale registration took place on 3rd July 2024 and have paid advance tax at 20%.
Where can I find the amendment notification. My land sale registration took place on 3rd July 2024 and have paid advance tax at 20%.
Refer https://incometaxindia.gov.in/Tutorials/15-%20LTCG.pdf
Page: 6
"Note: The Finance (No. 2) Act, 2024 removed the indexation benefit and introduced a
uniform tax rate of 12.5% on long-term capital gains. As per the amendment, no indexation
benefit is allowed while computing capital gain from long-term capital assets transferred on
or after 23-07-2024. However, the Government has introduced a grandfathering provision.
This provision allows resident individuals and resident HUFs to still apply indexation on
land or building acquired before 23-07-2024 and pay tax at the old rate of 20% if the tax
under the new law (i.e., tax calculated at 12.5% without indexation benefit) results in a
higher amount."
Also read the illustration given on page 8-9 for better understanding.
VIKAS VERMA & CO
New Delhi
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