Tax Body Clarifies Acquisition Cost Of Real Estate Bought Before 2001 For LTCG
NDTV
The FY25 Budget has reduced LTCG tax on real estate to 12.5 per cent, from 20 per cent previously. However, the benefit of indexation was done away with for properties purchased after April 2001.
The cost of acquisition of real estate properties purchased before 2001 will be the fair market value (FMV, not exceeding the stamp duty value) as of April 1, 2001, or the actual cost of the land or building for the purpose of calculation of long-term capital gains (LTCG) tax, the I-T department has said.
The FY25 Budget has reduced LTCG tax on real estate to 12.5 per cent, from 20 per cent previously. However, the benefit of indexation was done away with for properties purchased after April 2001.
The indexation benefit allowed taxpayers to compute gains arising out of sale of capital assets after adjusting inflation.
