If you're planning to sell a residential property that you've held for more than 24 months, you'll need to be aware of the recent changes introduced in the Union Budget 2024 regarding long-term capital gains (LTCG) tax. Here’s what you need to know, explained in simple terms. New Tax Rules on Property Sales 1. Reduced Tax Rate: The tax rate on long-term capital gains from selling a property has been reduced from 20% to 12.5%. This sounds like good news, right? But there’s a catch. 2. No More Indexation Benefit: Previously, we could adjust the purchase cost of the property for inflation, thanks to the indexation benefit. This adjustment helped reduce our taxable gains and, in turn, the tax we had to pay. But now, this benefit has been removed. 3. An Important Option: After hearing concerns from many, the government decided to offer some relief. Now, we can choose between two tax options: 12.5% tax rate without indexation 20% tax rate with indexation This choice is availab...
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