New Delhi: Realty stocks, including Godrej Properties, DLF, Macrotech Developers, Oberoi Realty and Mahindra Lifespace Developers gained a day after the government on Tuesday said people who purchased houses before July 23, 2024, can opt to choose between two tax rates for long-term capital gains (LTCG) tax.
During the morning trade, Godrej Properties appreciated over 4 per cent, Macrotech Developers increased 4 per cent, DLF climbed 3.88 per cent, Oberoi Realty jumped 3.79 per cent and Mahindra Lifespace Developers advanced 1.82 per cent on the BSE.
Godrej Properties was trading at Rs 2,973.55 today at 2:03 pm. Macrotech Developers was at Rs 1,219.05, DLF at Rs 843.25, Oberoi Realty at Rs 1,769.15 and Mahindra Lifespace Developers at Rs 576.
Govt gives option to calculate LTCG tax on properties, pay lower tax
It may be recalled that Union Finance Minister Nirmala Sitharaman in her Budget 2024-25 speech had proposed to lower the LTCG from 20 per cent to 12.5 per cent but removed the indexation benefits. The tax experts maintained that the proposed changes would raise the LTCG tax burden.
The indexation benefit allowed taxpayers to compute gains arising out of the sale of capital assets after adjusting for inflation.
The amendments to the Finance Bill, 2024, was circulated to the Lok Sabha members on Tuesday. The new rules stated that ‘individuals or HuF (Hindu Undivided Family) who bought houses before July 23, 2024, can compute his/her taxes under the new scheme [@12.5 per cent without indexation] and old scheme [@20 per cent with indexation] and pay such tax which is lower of the two’.
“Taxpayers can choose the more beneficial regime and should not be worse off because of change in law. Concerns around taxation of inflationary gains in respect of immovable property acquired prior to a change in the law have been addressed,” Gouri Puri, Partner, Shardul Amarchand Mangaldas & Co. said commenting on the amendments.
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A day after the government gave option to calculate LTCG tax on properties, share price of Godrej Properties, DLF, Macrotech Developers, Oberoi Realty and Mahindra Lifespace Developers gained on August 7, 2024. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
