Reduction of LTCG from 27% to 15% is much better than removal of indexation benefits: Hari Babu, of NAREDCO
Lowering the long-term capital gains (LTCG) tax is better than removing indexation benefits. Even after eliminating indexation, a 12.5% tax rate provides a much better benefit, said a real estate expert. "Suppose you want to purchase property now and sell it after exactly 25 months. What is the indexation available for you? Very minimal. But if they reduce the tax rate by 12.5%, and you calculate the indexation for two years, it is nothing. So the reduction of tax by 12.5% is much bigger. You have to see both of these scenarios. Somebody selling a 20-year-old property and somebody selling a two-year-old property. But two years is definitely a much bigger advantage than 20 years in property selling," said G Hari Babu, National President of NAREDCO.
