Perspective on the Indexation Amendment by Mr. Shishir Baijal, Chairman and Managing Director, Knight Frank India
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Below the Perspective on the Indexation Amendment by Mr. Shishir Baijal, Chairman and Managing Director, Knight Frank India
“The Indian government's decision to allow taxpayers to choose between a 12.5% tax rate without indexation or a 20% rate with indexation on long-term real estate transactions (acquired before July 23, 2024) is a significant development. This move offers flexibility for sellers, who can now choose the option that best suits their financial situation and the extent of their property's appreciation. While the 12.5% rate may seem immediately attractive, the decision to opt for it or the 20% rate with indexation should be made after careful consideration of individual circumstances. Ideally, if a property's value has significantly outpaced inflation, the 12.5% rate might be more beneficial. However, indexation could be advantageous in cases where property appreciation is closer to the inflation rate. This amendment is expected to stimulate investment and sales in the housing market by potentially reducing the tax burden on sellers. It reflects a progressive approach by the finance minister to encourage growth in the real estate sector.”
Above views are of the author and not of the website kindly read disclaimer
.jpg)
