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The government has reintroduced indexation in real estate. With this, investors who purchased properties before July 23, 2024 will have an option to avail indexation benefits on the long term capital gains tax.
These investors can choose to pay 20% on LTCG after factoring in indexation or 12.50% on LTCG.
In the recent budget, the government had withdrawn indexation benefits from real estate and reduced LTCG from 20% to 12.5%.
The latest amendment came after requests from the industry to reconsider the withdrawal of indexation benefits.
Meanwhile, AMFI has made a similar request to the finance minister to reconsider the withdrawal of indexation benefits in mutual funds.
