The amendment came after the new provision was criticised for raising tax incidence and disincentivizing investments in real estate. Realtors body NAREDCO President G Hari Babu termed it as a balanced approach by the government. "This decision is poised to bring significant relief to property owners and investors who were concerned about the removal of indexation benefits.
However, “stakeholders must closely monitor these geopolitical undercurrents and macroeconomic indicators to adapt their strategies effectively,” said Dr Niranjan Hiranandani, Chairman, NAREDCO.
Realtors body NAREDCO President G Hari Babu termed it as a balanced approach by the government.
"This decision is poised to bring significant relief to property owners and investors who were concerned about the removal of indexation benefits. By providing an option, the amendment addresses the needs of long-term investors who might have otherwise faced a disproportionate tax burden due to the withdrawal of indexation," he said.
Real estate developers have hailed the Union Budget 2024 as a pillar of “Viksit Bharat”. The budget 2024 has not only addressed the housing needs of one crore urban poor and middle-class families but also fostered real estate growth. The announcement of a Public-Private Partnership (PPP) model for rental housing accommodation specifically designed for industrial workers, is aiming to enhance their living conditions.
The Yamuna Expressway Industrial Development Authority (Yeida) on Tuesday said it has selected the expert consultant to prepare a master plan for the development of an urban centre in Agra, along the Yamuna Expressway. Once the master plan for the urban city is final, work will begin on the project which is being executed at a cost of ₹40,000 crore, said officials. The consultant, Tractable Engineering, will take nine months to complete this comprehensive plan and prepare the blue print under the Master Plan-2031.
The announcement in the first Union Budget of Modi 3.0 govt to moderate stamp duty rates for homebuyers and further duty reduction for women buyers are seen bolstering the real estate sector in tier 2 cities and small towns. The stamp duty in urban areas of Madhya Pradesh is 12.5 per cent for men and 10.5 for women. Developers expect the centre's move to moderate stamp duty will drive the real estate market.
A day after the Union Budget removed the indexation benefit for the sale of properties, the real estate sector is still coming to grips with the change. The income tax department tried to clear the air with a series of tweets on Wednesday and said that the move will benefit a large number of taxpayers looking to sell properties. The finance minister’s move to reduce long term capital gains (LTCG) tax rate from 20% with indexation to 12.5 % without indexation for real estate will benefit in almost all cases, the I-T department said.
In a move that will enhance connectivity in Bihar, Finance minister Nirmala Sitharaman announced an allocation of Rs 26,000 crore during the presentation of the Union Budget 2024-25. The Centre will provide assistance for the development of key road connectivity projects, which include the Buxar-Bhagalpur Expressway, the Patna-Purnea Expressway, Bodhgaya, Rajgir, Vaishali and Darbhanga spurs and an additional 2-lane bridge over river Ganga at Buxar.
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.
If you bought a property in or after 2001 and plan to sell it now, you may find yourself paying more tax, especially after the new proposals introduced on July 23. Budget 2024. has reduced tax rates on capital gains earned from sale of house properties held for long term, but has removed the indexation benefit available to taxpayers. The long-term capital gains (LTCG) has been reduced from 20% with indexation benefit to 12.5% without indexation for the real estate sector.
