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Jul 27, 2024
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‘No review of capital gains tax change for real estate’
The government is not open to reviewing the long-term capital gains regime for sale of property, which has ignited a debate, Sanjay Malhotra, secretary, Department of Revenue said in an interview. “For most sellers, the new regime will result in reduced tax incidence. Only for some, it will lead to an increase, he told Priyansh Verma. The secretary also said reduction in TDS rates may be taken up as part of the scheduled re-drafting of the Income Tax Act. Excerpts:
Are you open to review the new capital gains tax rate of 12.5% without indexation for sale of property (earlier the applicable tax was 20% but with indexation benefit)?
There are concerns that this would increase the tax incidence and hit real-estate transactions and the construction sector.
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