Criticism leads Centre to amend indexation norms

Taxpayers get choice to pay LTCG computed at 20% with indexation or 12.5% without indexation for sale of properties bought before July 23, '24

The government on Tuesday proposed significant relief for individuals who bought houses before July 23, 2024, by giving them the option to choose between two tax rates for long-term capital gains (LTCG) tax.

The Budget 2024-25 had proposed to lower the LTCG from 20 per cent to 12.5 per cent but removed the indexation benefits.

The new rates have come into effect from July 23, 2024. The indexation benefit allowed taxpayers to compute gains arising out of the sale of capital assets after adjusting for inflation.