How The Indexation Benefit Removal Will Affect The Real Estate Sector?

In Union Budget 2024, Finance Minister Nirmala Sitharaman had announced a reduction in the long term capital gains tax on real estate transactions from 20 percent earlier to 12.5 percent and also removed the indexation benefit used for calculation of long term capital gains (LTCG). However, Delhi NCR-based listed real estate developer DLF Limited said it does not see any major impact on sales due to removal of indexation benefit by the central government.

On the other hand many real estate experts have expressed concerns that these changes in the capital gain tax regime may take a toll on the sales in real estate sector. India's largest realty firm DLF Limited on July 25 reported a 23 percent YoY jump in its net profit at Rs 646 crore for the quarter ended June 30, 2024. The company had posted a net profit of Rs 526.11 crore in the year-ago period.

Source: Moneycontrol