Tag: property tax

  • Budget 2024: LTCG Reduction On Property Without Indexation Bad News For Sellers; Check Calculation | Real Estate News

    Finance Minister Nirmala Sitharaman presented her 7th budget in which she announced some changes in the new tax slabs while the old remain untouched. FM Sitharaman also proposed a long-term capital gain tax rate of 12.5% on all financial and non-financial assets including properties. Listed financial assets held for more than a year will be classified as long-term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term. 

    “Long-term gains on all financial and non-financial assets, on the other hand, will attract a tax rate of 12.5 per cent. For the benefit of the lower and middle-income classes, I propose to increase the limit of exemption of capital gains on certain financial assets to Rs 1.25 lakh per year,” said the FM. The Finance Minister also announced to remove the indexation clause for the ease of tax computation. However, this will prove detrimental for the property sellers. Indexation is used to adjust the property price at the time of sale to account for inflation. 

    Check Property Sale LTCG Calculation Here

    The Congress party shared a detailed calculation showing how LTCG reduction without indexation is not good news for people. “Suppose you bought an apartment in January 2009 for Rs 50 lakhs. Fifteen years later, you sold it today for Rs 1.5 crore. With indexation, the Rs 50 lakhs you paid 15 years ago is considered to be worth Rs 1.32 crore today. So, the net profit or capital gain is only Rs 17.5 lakhs, and you’d pay only Rs 3.5 lakhs as Capital Gains Tax at the rate of 20%. But without indexation, your capital gain now is Rs 1 crore, and at 12.5%, you’d end up paying Rs 12.5 lakhs in tax. Essentially, the government takes Rs 9 lakhs more than the old method,” it said.


    It further clarified that if you bought an apartment in January 2018 for Rs 80 lakhs and sold it today for Rs 95 lakhs due to a personal emergency. “This is where it gets tough. If indexation was applicable, you actually made a loss of Rs 11.76 lakhs and would have paid ‘Zero’ LTCG tax. But with the new method, Nirmala Sitharaman will add salt to your wound. She will take Rs 1.87 lakhs from you as LTCG. Your net loss becomes Rs 13.63 lakhs,” it said.


    For those unfamiliar with the Cost Inflation Index (CII), it shows how the value of Rs 100 in 2001-02 is now Rs 363. 

    LTCG to Loot Middle Class | How will removing indexation in calculating LTCG tax affect everyone?

    Today, FM @nsitharaman reduced Long Term Capital Gains (LTCG) Tax on properties to 12.5%, but cleverly removed indexation, which adjusts the property price at the time of sale, to… pic.twitter.com/6uaYjtIaDP
    — Congress Kerala (@INCKerala) July 23, 2024

    The Income Tax Department also shared a test calculation scenario where it claimed that people will save taxes due to removal of the indexation.

    Taxation of Capital Gains – Salient Points

    Holding period has been simplified. There are only two holding periods, for listed securities, it is one year, for all other assets, it is two years.

    Rate for short-term STT paid listed equity, Equity oriented mutual fund and… pic.twitter.com/w1AdvHDInV
    — Income Tax India (@IncomeTaxIndia) July 23, 2024

    Even experts shared the same concern. They agreed that removing indexation defeats the whole purpose of LTCG. “This affects everyone and will push more people to undervalue their transactions, increasing the use of black money. This makes real estate investments less attractive and could drive our construction sector into an even bigger crisis,” it said.

  • J&Ok events slam Executive over imposition of assets tax, Jammu Bar threatens agitation

    Categorical Information Carrier

    SRINAGAR: The political events have strongly antagonistic the imposition of assets tax by means of Lt  Governor management in Jammu and Kashmir whilst Bar Affiliation Jammu has threatened to release agitation if the “anti-people” notification was once now not withdrawn by means of the federal government.

    Jammu Bar Affiliation president M Ok Bhardwaj in a presser in Jammu nowadays termed imposition of assets tax by means of executive as “anti-people” transfer.

    He stated the federal government must withdraw the valuables tax and if it isn’t withdrawn, then the Bar Affiliation will release a boulevard agitation to pressure the federal government to revoke the order.

    Terming the valuables tax as “tax terrorism”, he stated, “If the order isn’t withdrawn in the following few days, we can give a choice subsequent week for protests in Jammu and Kashmir and the entire UT must stay closed in contrast notification”.

    The federal government has issued notification pronouncing imposition of assets tax within the Municipalities and Municipal Councils of J&Ok. The residential and non-residential homes were incorporated in selection of the valuables tax.

    “No Taxation With out Illustration”. Why must humans in J&Ok pay state taxes together with the proposed assets tax when we don’t have any say in how our executive is administered & no say within the choice making of J&Ok. We’re anticipated to be mute spectators to all unjust choices by means of Raj Bhavan,” tweeted former J&Ok Leader Minister and NC vice chairman Omar Abdullah.

    Every other former J&Ok CM and PDP leader Mehbooba Mufti stated imposition of assets tax was once a part of BJP’s higher time table of impoverishing humans of J&Ok.

    “Their actual purpose is to make the folks of J&Ok so deficient that they don’t call for anything else. This is a part of a bigger time table to bury humans of J&Ok,” she stated, including humans would have to withstand in the event that they wish to eliminate those common orders.

    Every other ex J&Ok CM and DPAP president Ghulam Nabi Azad stated J&Ok’s economic system is shattered so humans don’t seem to be able to pay assets tax at this level of time.

    “J&Ok is but to triumph over the losses it suffered because of militancy within the ultimate 3 a long time. We’ve got an ever expanding unemployment fee, suffering companies and very deficient financial local weather right here. Amidst this case levying assets taxes isn’t a excellent choice in any respect,” he stated.

    Srinagar Mayor and J&Ok Apni Celebration chief Junaid Azim Mattu stated imposition of assets tax in J&Ok is sarcastically violative of municipal empowerment as this has neither been deliberated upon and nor authorized by means of elected ULBs.

    “Whilst SMC will discover tactics to contest this arbitrary transfer, I’m writing to the Lt Governor searching for a withdrawal of the SO,” Mattu tweeted.

    J&Ok Congress leaders in a joint remark stated imposition of assets tax is any other blow to the already economically & politically distressed humans of Jammu and Kashmir.

     “The bureaucratic regime beneath the command of the central executive is harassing the typical humans by means of issuing a chain of anti humans orders,” the birthday celebration stated and sought rapid withdrawal of the order. “All such necessary choices must be left to the elected executive”.

    J&Ok Apni Celebration senior vice chairman Ghulam Hassan Mir  stated  the verdict must be left to the elected executive.

    Senior CPI( M) chief Mohamamd Yousuf Tarigami  termed the levying of assets tax  as arbitrary and  undemocratic.

    “The method of amassing tax and deciding the values of the tax is the only prerogative of the elected establishments. Levying assets tax in absence of an elected executive is fairly unconstitutional. Even the elected municipal our bodies weren’t consulted,” he stated and demanded the rapid withdrawal of the notification.

    On the other hand, the federal government defended imposition of assets tax announcing it’ll assist municipal our bodies to generate earnings for higher services and products.

    “Higher Municipal services and products are anticipated to draw extra funding and inspire extra humans to arrange companies in J&Ok. Income generated from Belongings Tax might be used to enhance infrastructure, construct new parks and playgrounds and care for the already present amenities which is able to considerably strengthen the services and products supplied by means of Municipal our bodies,” stated Foremost Secretary J&Ok Housing and City Construction Division, H Rajesh Prasad.

    He stated since Belongings Tax is to be levied yearly, it may be paid in two equivalent installments. “It’s going to now not burden the typical humans. The ten in step with cent rebate will also be availed by means of early submission of Belongings Tax.”

    SRINAGAR: The political events have strongly antagonistic the imposition of assets tax by means of Lt  Governor management in Jammu and Kashmir whilst Bar Affiliation Jammu has threatened to release agitation if the “anti-people” notification was once now not withdrawn by means of the federal government.

    Jammu Bar Affiliation president M Ok Bhardwaj in a presser in Jammu nowadays termed imposition of assets tax by means of executive as “anti-people” transfer.

    He stated the federal government must withdraw the valuables tax and if it isn’t withdrawn, then the Bar Affiliation will release a boulevard agitation to pressure the federal government to revoke the order.

    Terming the valuables tax as “tax terrorism”, he stated, “If the order isn’t withdrawn in the following few days, we can give a choice subsequent week for protests in Jammu and Kashmir and the entire UT must stay closed in contrast notification”.

    The federal government has issued notification pronouncing imposition of assets tax within the Municipalities and Municipal Councils of J&Ok. The residential and non-residential homes were incorporated in selection of the valuables tax.

    “No Taxation With out Illustration”. Why must humans in J&Ok pay state taxes together with the proposed assets tax when we don’t have any say in how our executive is administered & no say within the choice making of J&Ok. We’re anticipated to be mute spectators to all unjust choices by means of Raj Bhavan,” tweeted former J&Ok Leader Minister and NC vice chairman Omar Abdullah.

    Every other former J&Ok CM and PDP leader Mehbooba Mufti stated imposition of assets tax was once a part of BJP’s higher time table of impoverishing humans of J&Ok.

    “Their actual purpose is to make the folks of J&Ok so deficient that they don’t call for anything else. This is a part of a bigger time table to bury humans of J&Ok,” she stated, including humans would have to withstand in the event that they wish to eliminate those common orders.

    Every other ex J&Ok CM and DPAP president Ghulam Nabi Azad stated J&Ok’s economic system is shattered so humans don’t seem to be able to pay assets tax at this level of time.

    “J&Ok is but to triumph over the losses it suffered because of militancy within the ultimate 3 a long time. We’ve got an ever expanding unemployment fee, suffering companies and very deficient financial local weather right here. Amidst this case levying assets taxes isn’t a excellent choice in any respect,” he stated.

    Srinagar Mayor and J&Ok Apni Celebration chief Junaid Azim Mattu stated imposition of assets tax in J&Ok is sarcastically violative of municipal empowerment as this has neither been deliberated upon and nor authorized by means of elected ULBs.

    “Whilst SMC will discover tactics to contest this arbitrary transfer, I’m writing to the Lt Governor searching for a withdrawal of the SO,” Mattu tweeted.

    J&Ok Congress leaders in a joint remark stated imposition of assets tax is any other blow to the already economically & politically distressed humans of Jammu and Kashmir.

     “The bureaucratic regime beneath the command of the central executive is harassing the typical humans by means of issuing a chain of anti humans orders,” the birthday celebration stated and sought rapid withdrawal of the order. “All such necessary choices must be left to the elected executive”.

    J&Ok Apni Celebration senior vice chairman Ghulam Hassan Mir  stated  the verdict must be left to the elected executive.

    Senior CPI( M) chief Mohamamd Yousuf Tarigami  termed the levying of assets tax  as arbitrary and  undemocratic.

    “The method of amassing tax and deciding the values of the tax is the only prerogative of the elected establishments. Levying assets tax in absence of an elected executive is fairly unconstitutional. Even the elected municipal our bodies weren’t consulted,” he stated and demanded the rapid withdrawal of the notification.

    On the other hand, the federal government defended imposition of assets tax announcing it’ll assist municipal our bodies to generate earnings for higher services and products.

    “Higher Municipal services and products are anticipated to draw extra funding and inspire extra humans to arrange companies in J&Ok. Income generated from Belongings Tax might be used to enhance infrastructure, construct new parks and playgrounds and care for the already present amenities which is able to considerably strengthen the services and products supplied by means of Municipal our bodies,” stated Foremost Secretary J&Ok Housing and City Construction Division, H Rajesh Prasad.

    He stated since Belongings Tax is to be levied yearly, it may be paid in two equivalent installments. “It’s going to now not burden the typical humans. The ten in step with cent rebate will also be availed by means of early submission of Belongings Tax.”