The World Opinion

Tag: Real Estate News

  • Finance Ministry’s BIG TAX Move Soon On Property Transaction Amid Indexation Discontent | Real Estate News

    In relief for property owners, the Finance Ministry is mulling to bring relief for transactions held before July 23, 2024, the date on which the Budget was presented. In the budget, Finance Minister Nirmala Sitharaman has removed the indexation rule on property transactions. The move led to significant discontent with experts pointing out that after the removal of the indexation benefit, sellers will have to pay more taxes.

    Seeing the widespread discontent, the NDA government is now planning to offer some relief to the property owners.  

    Finance Minister Nirmala Sitharaman has proposed an amendment to the Finance Bill, offering significant relief on capital gains tax for property transactions. According to the amendment, taxpayers can choose between a lower tax rate of 12.5 per cent without indexation or a higher rate of 20 per cent with indexation for properties acquired before July 23, 2024, the date the union budget was presented in the Lok Sabha. 

    Taxpayers can calculate their taxes under both options and select the one with the lower tax liability. This new cut-off date of July 23, 2024, replaces the previous cut-off of 2001, alleviating concerns for long-time property owners.

    In the Finance Bill, Sitharaman proposed a flat long-term capital gains tax of 12.5 percent with no indexation benefits. Before it, property transactions used to be taxed at 20 per cent with indexation benefit. Now with the proposed amendments, taxpayers will have a choice like they have in paying income tax under the old structure with deductions or under the new tax structure without deductions.

    The proposed amendment will apply not only to real estate transactions but also to unlisted equity transactions, which are done before July 23, 2024. All such transactions will be taxed at 10 per cent long-term capital gains instead of the budget proposal of 12.5 per cent tax.

    The Lok Sabha began discussing the Finance Bill after the Appropriation Bill for the central government’s expenditure for 2024-25 was passed by the House on Monday. The passage of the Finance Bill by Parliament will complete the budget process.

  • Senior Living Continues To See A Rise With New Projects On Unveil | Real Estate News

    The concept of senior living has continued to grab the attention of homebuyers as well as developers. Cities like Bengaluru and Chennai are increasingly witnessing the advent of senior living projects. With the rise in the number of nuclear families and with many elderly opting to spend quality time in their retirement life peacefully, the demand for senior living has witnessed a gradual growth over the years. The senior living sector has attracted the interest of non-resident Indians who plan to relocate to India post-retirement or seek to invest in a senior living initiative for their parents.

    As per a report from ResearchAndMarkets.com, the worldwide retirement communities market reached $189.3 billion in 2020, projected to reach $285.1 billion by 2025, and further increase to $374.7 billion by 2030. In India, the retirement and second-home market is anticipated to experience an annual growth rate of 23.63 per cent over the next five years, according to a study by 360 Realtors. The report estimates the market size to reach $4.021 billion by 2026, a substantial increase from the current size of approximately $1.4 billion.

    This is affirmed by the launch of new projects. Recently, Vedaanta Senior Living in partnership with MJ Infrastructure announced the launch of Vedaanta Anugraham, a luxury retirement community designed for Active Retro Living in Jigani of Bengaluru. Dr. P Anil Kumar,  Chairman and Managing Director of MJ Infrastructure, said, “The project is being developed with an investment of over Rs 100 crores. Senior living has continued to grab the eyeballs of investors and buyers. The senior housing sector provides elderlies with an opportunity to go back to doing things that they enjoy, and live in a peaceful and serene environment, embraced by a community that understands the essence of living fully in the golden years. These projects have integrated community ensuring the emotional, spiritual & physical well being of all residents.”

    Rahul Sabharwal, Co-Founder and Director of the firm said, “The senior living sector is witnessing new trends as well. People are opting for it to spend a peaceful retirement life as well because these projects provide all kinds of facilities, leisure experience and medical emergency backup 24×7.” 

    Current industry trends indicate an increasing inclination towards senior assisted living residences as a favoured choice for a second or retirement home among elderly individuals living independently. Estimates suggest that approximately 20 million seniors currently live alone, and this number is expected to rise in the next decade. Experts note that new retirees aspire to maintain an independent lifestyle, contributing to a higher acceptance of senior living environments.