Indexation News
Who can avail the indexation benefit on property sale and is it even worth it?
If tax at the new 12.5% rate is higher than 20% rate with indexation on properties bought before 23 July 2024, the excess will be ignored. However, the new tax without the benefit allows to offset capital losses against gains.
6 min read6 Apr 2025Get tough: A lenient capital gains tax regime has been distorting incentives
Not only have capital gains had an indexation benefit that lets the inflation effect be sliced off, it overstated the price-rise experience of India’s well-off investor classes. Privileging a single income category warps incentives and diverts money towards privileged earning sources. Let’s fix it.
4 min read15 Aug 2024Even without indexation, real estate enjoys more tax breaks than any other asset
Home loans, rental income, and in some circumstances even capital gains on property come with tax breaks.
4 min read15 Aug 2024No indexation: Sale of homes needs to be taxed at the same rate as salaried income
Locked homes, over-expansion, and a capital-deficient economy—Vivek Kaul examines the far-reaching consequences of India's real estate tax policies, and the arguments for and against the removal of indexation benefits, and why a uniform tax rate on all income types could be the solution.
13 min read14 Aug 2024Reintroduced indexation benefit for property disallows loss offsets, excludes NRIs and companies
The reintroduced indexation benefit for long term capital gains tax on real estate is limited to resident individuals, excluding companies, LLPs, firms, and NRIs. It applies only to gains, not losses, preventing offset or carry forward of losses.
3 min read7 Aug 2024Relief for homeowners: Govt to restore indexation benefit for property
The finance minister is expected to amend the finance bill to restore the indexation benefit for property acquired before 23 July 2024. This means taxpayers can choose between the new tax regime with a lower rate but no indexation, and the old regime with a higher rate but indexation benefits.
3 min read7 Aug 2024The budget served India’s self-proclaimed middle class a reality check
The removal of indexation benefits on capital gains tax may finally have woken up the country’s well-off. As government spending grows, somebody’s got to pick up the tab. And regardless of their political support for the Modi government, those who earn more must pay more.
4 min read6 Aug 2024Sold house in last 2 years? You may get both indexation benefit and lower 12.5% tax rate
The government has not made amendments in section 54, as a result of which a tax-saving opportunity has arisen for some property sellers
3 min read27 Jul 2024Budget 2024: How will removal of indexation benefits for property sales impact real estate?
Budget 2024 removes indexation benefits for property sales and reduces LTCG tax from 20% to 12.5%. CLSA expects negative impact on shorter duration investments with moderate price growth.
3 min read24 Jul 2024Benefits of indexation: How it helps you save tax?
Indexation enables the tax payer to account for how inflation will affect acquisition costs. In essence, this reduces the amount of capital gains that would be subject to tax. Let us discuss more about it.
2 min read17 Sep 2022