Removal of indexation benefit in real estate will deter sellers in the secondary market | theprint.in
The real estate sector has cautioned the government that the proposal to remove indexation benefits for long-term capital gains in real estate will hurt the growth of the sector. “The removal of the indexation benefit for long-term capital gains in real estate is likely to significantly impact property owners’ holdings assets for more than ten years. Owners of heritage homes may face a higher tax burden upon sale, as the absence of indexation prevents adjusting the property’s cost basis for inflation. The change could result in higher taxes for individuals who want to sell assets held for more than ten years” said Niranjan Hiranandani, Chairman, NAREDCO.
