LTCG tax changes to benefit most real estate investors: Revenue secy
Revenue Secretary Sanjay Malhotra on Wednesday said the changes in Long-Term Capital Gain Tax (LTCG) announced in the Budget by Finance Minister Nirmala Sitharaman will benefit most of the people investing in the real estate sector.
The Budget has lowered the LTCG from 20 per cent to 12.5 per cent but removed the indexation benefits.
The indexation benefit allowed taxpayers to compute gains arising out of the sale of capital assets after adjusting inflation.
The proposal has raised apprehensions that a person selling his property will have to pay a higher capital gain tax.
"This is mostly a simplification exercise. Some people have expressed apprehension on the removal of indexation. I want to allay their concerns that while indexation has been removed at the same time the tax rates have been substantially reduced from 20 pc to 12.5 pc. This will benefit most of the people investing in real estate in the long term as the rate of return is more than 10-11 per cent," Malhotra told PT