Relief For Home Buyers : The Modi government has decided to give a big gift to home buyers. The government has made a big change in long-term capital gains in real estate. Under this, home buyers have once again been given the option of indexation. On Tuesday, the government proposed to give relief to taxpayers in the matter of capital gains tax on real estate properties.

That is, now property owners will have the option to choose either a 20 percent or 12.5 percent tax rate on capital gains. The details of this amendment in the Finance Bill, 2024 have been distributed to the Lok Sabha members.

What is the proposal?

According to the revised proposal, any person or Hindu Undivided Family (HUF) buying a house before July 23, 2024, can choose to pay tax under the new scheme of 12.5 percent without including the effect of inflation (indexation). Apart from this, he will also have the option of 20 percent tax with indexation under the old scheme. Whichever of the two options makes the tax less, he can pay it. Let us tell you, while presenting the Budget 2024-25, Finance Minister Nirmala Sitharaman had announced to reduction of the tax to 12.5 percent with the removal of indexation benefit from the sale of property. There was unhappiness in various sections about this.