Big relief: Taxpayers will have two options on LTCG on properties

Finance Minister Nirmala Sitharaman has proposed an amendment in the Finance Bill to give big relief on capital gains tax in property transactions.

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The proposed amendment implies that taxpayers on property transactions can avail either a lower tax of 12.5 per cent without indexation or a higher rate of 20 per cent with indexation, if the property is acquired before July 23, 2024, the day the union budget was presented in the Lok Sabha.

The taxpayers can compute taxes under both schemes and will have a choice to pay tax under the scheme in which it is lower.

July 23, 2024, is now set as the cut-off date for the calculation of the capital gains versus the earlier cut-off of 2001 that had caused a lot of concern over its impact on long-time owners of property assets.