In a significant development, President Droupadi Murmu on 16th August 2024, Friday gave her assent to the Finance (No 2) Bill, 2024, officially enacting it into law. This marks the conclusion of the budget exercise for the FY 2024-25, the first full-fledged budget under the Modi 3.0 administration.
The Finance (No 2) Bill, 2024, which was passed by Parliament last week, included several important amendments. One of the most notable changes, proposed by FM Nirmala Sitharaman, was the relaxation of the long-term capital gains tax regime on real estate. Originally, the budget proposed reducing the long-term capital gains tax rate on real estate from 20% to 12.5% without the indexation benefit. However, the amendment passed on August 7 allows taxpayers the flexibility to choose between the new lower tax rate and the old regime, which offers a higher rate with the indexation benefit.
The Lok Sabha approved the bill with 45 official amendments through a voice vote, and it was subsequently returned by the Rajya Sabha after FM Sitharaman addressed the debate. With the President's assent, the Finance (No 2) Bill, 2024, has now become law, solidifying the government's fiscal policies for the year.
Official copy of the notification has been attached
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