Facing a backlash over changes to capital gains tax on real estate, govt. relents to grant relief

Facing a backlash over changes to the long-term capital gains tax regime announced in the Budget, including critiques from MPs within the NDA coalition, the government has relented to grant some relief for property transactions. Finance Minister Nirmala Sitharaman had announced that the tax on long-term capital gains is being reduced from 20% with indexation benefits, to 12.5% without indexation benefits. An amendment is being made to The Finance Bill, 2024, as per details circulated amongst Lok Sabha members, to enable taxpayers to choose either of these two tax rates that work out lower for them, in cases involving transfer of immovable assets like land and building acquired before July 23 this year.