Government gives option to taxpayer to calculate capital gains tax on real estate

The government on Tuesday proposed a relief to taxpayers with respect to capital gain tax on real estate properties by giving them the option to choose between 20 per cent and 12.5 per cent tax rates.

As per the amendments to Finance Bill, 2024, circulated to the Lok Sabha members, an individual or HUF buying houses before July 23, 2024, can compute his taxes under the new scheme of 12.5 per cent without indexation and the old scheme of 20 per cent with indexation and pay such tax which is lower of the two.