Finance bill 2024 withdrew the indexation benefit on Capital Gain on property sold after 23.07.2024 which resulted in huge resistance by the property owners.
However, on August 6, Finance ministry has made an amendment to the above provision. Following amendments have been introduced:
1) Indexation benefit has been restored on Sale of property.
2) Taxpayers can choose to pay tax@ 12. 5% on Capital gain earned on sale of property (without indexation benefit) or pay tax @ 20% on Capital gain amount (after indexation benefit). Taxpayers can pay choose to pay tax at lower of the two provisions.
3) This relief is available only on property purchased before 23.07.2024
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