LTCG Tax Without Indexation: A Win for Real Estate Investors
Real Estate

LTCG Tax Without Indexation: A Win for Real Estate Investors

The Chairman of the Central Board of Direct Taxes (CBDT) has affirmed that long-term capital gains (LTCG) transactions in real estate, conducted without indexation, offer substantial benefits to taxpayers. This stance is expected to simplify the tax process and potentially increase investment in the real estate sector.

The CBDT's endorsement highlights that the elimination of indexation adjustments for LTCG transactions makes tax calculations more straightforward and potentially less burdensome for investors. Indexation, which adjusts the purchase price of an asset for inflation, has been a complex and often confusing element in calculating capital gains. By removing this requirement, the process becomes more transparent and easier for taxpayers to manage.

Real estate investors stand to benefit from this change, as it reduces the complexity involved in calculating gains and simplifies compliance. The move aligns with the government's broader objective of streamlining tax regulations and making them more investor-friendly.

This development comes amid ongoing efforts to enhance the attractiveness of the Indian real estate market. By making tax calculations simpler and more predictable, the CBDT aims to encourage greater investment in real estate, supporting both the sector and the broader economy.

In summary, the CBDT's recent clarification on LTCG transactions without indexation is a positive step for real estate investors, potentially fostering increased investment and simplifying tax procedures.

The Chairman of the Central Board of Direct Taxes (CBDT) has affirmed that long-term capital gains (LTCG) transactions in real estate, conducted without indexation, offer substantial benefits to taxpayers. This stance is expected to simplify the tax process and potentially increase investment in the real estate sector. The CBDT's endorsement highlights that the elimination of indexation adjustments for LTCG transactions makes tax calculations more straightforward and potentially less burdensome for investors. Indexation, which adjusts the purchase price of an asset for inflation, has been a complex and often confusing element in calculating capital gains. By removing this requirement, the process becomes more transparent and easier for taxpayers to manage. Real estate investors stand to benefit from this change, as it reduces the complexity involved in calculating gains and simplifies compliance. The move aligns with the government's broader objective of streamlining tax regulations and making them more investor-friendly. This development comes amid ongoing efforts to enhance the attractiveness of the Indian real estate market. By making tax calculations simpler and more predictable, the CBDT aims to encourage greater investment in real estate, supporting both the sector and the broader economy. In summary, the CBDT's recent clarification on LTCG transactions without indexation is a positive step for real estate investors, potentially fostering increased investment and simplifying tax procedures.

Next Story
Infrastructure Transport

India’s Maha Kumbh of Road Construction

The RAHSTA Forum 2025, held on June 25 at Courtyard by Marriott, Mumbai, delivered powerful insights and dialogue on the future of India’s roads and highways sector. Organised by the FIRST Construction Council, the Forum served as the curtain-raiser to the much-anticipated RAHSTA Expo 2025, set to take place on 3rd and 4th September at the Jio Convention Centre, Mumbai.Union Minister of Roads Transport & Highways Shri Nitin Gadkari, while appreciating the efforts of FIRST Construction Council and ASAPP Info Global Group, commended the awards which recognise excellence across various..

Next Story
Real Estate

Built to Last, Designed to Impress

The construction and interior design industries stand at the confluence of functionality and aesthetics, where innovation powers the creation of enduring structures and inspiring spaces. At the heart of this process are materials and solutions that enable architects, designers, and builders to realise their visions with precision and reliability.Featuring iconic brands such as Fevicol—synonymous with adhesive solutions—Dr. Fixit, a complete waterproofing system renowned for addressing every critical area of construction, and Roff, a specialist in tile-fixing solutions, Pidilite has earned ..

Next Story
Infrastructure Energy

New Push to Cut India’s Air Pollution through Power Sector Reforms

In a significant stride toward environmental sustainability, Cummins India introduced CPCB IV+ compliant gensets to India on July 5, 2023, marking a paradigm shift in the power generation industry. These generators are engineered to adhere to the progressive emission norms set by the Ministry of Environment, Forest, and Climate Change. Being the first sets in the field, they have garnered praise for their remarkable achievements in emissions reduction and cutting-edge technology. Powerica, with its four-decade-long partnership with Cummins India Limited, is dedicated to consistently deliver th..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?