Section

No indexation? LTCG tax could go up 290% on properties bought after 2010

By Business Standard - 4 months ago
Longer holding periods correlate with higher taxes with or without indexation. Without indexation, the taxes are comparatively higher
Read more at: Business Standard

Topics:

indexation property purchase Budget 2024 An analysis by Bankbazaar has revealed a significant increase in long-term capital gains (LTCG) tax liabilities for property owners across India following the removal of indexation benefits in the Union Budget 2024. Indexation is a method used to adjust the purchase price of an asset like property to account for inflation over time. This adjustment helps to reduce the taxable capital gains when the property is sold. How it works: The government publishes a Cost Inflation Index (CII) annually. When you sell a property the original purchase price is adjusted upwards using the CII to account for inflation. This adjusted purchase price is then used to calculate the capital gains potentially reducing the taxable amount. Impact of Removal: The removal of indexation means that the original purchase price of the property will be used to calculate capital gains without any adjustment for inflation. This will typically result in a higher taxab

Disclaimer : Mymoneytimes implements extreme caution and care in collecting data before publication. Mymoneytimes does not liable for the adequacy, accuracy or completeness of any given information. Hence we are not liable for any kind of direct or indirect loss caused by the use of such information.

Related Articles

Economy

Rexas Finance (RXS) ends presale with $12.2M raised: A guid

Economy

How to maintain a high credit score: 7 tips for financial st

Economy

ELI benefits from EPFO: Deadline for eligible employees to a

Economy

Personal loans and interest rates: All you need to know to m

Economy

Personal loan repayment: What it means & how it works?

Economy

Want a good credit score? Here are 8 key factors you must kn