Finance Amendment Bill: Govt Promises Tax Relief On Property Sales And LTCG Indexation Benefits

The government is preparing to provide significant relief to investors affected by recent budget tax changes. It plans to amend the Finance Bill, 2024, to address concerns over real estate sector investments. The proposed amendment will reinstate the benefit of indexation on property sales.

On Tuesday, the list of proposed amendments to the Finance Bill was distributed to Lok Sabha members. The key change addresses objections to the budget’s impact on real estate. Finance Minister Nirmala Sitharaman had announced a reduction in the long-term capital gains tax rate on property sales from 20% to 12.5% in the budget presented on July 23, 2024. However, the benefit of indexation for calculating tax liability was abolished, effective from the same date.