Finance Bill passed, indexation benefit continue…
Finance Bill 2024-25 has been passed in the Lok Sabha. Finance minister nirmala sitharaman, in her reply after the discussion on the Finance Bill, has announced relief to homebuyers by amending her budget announcement of long term capital gain tax on sale of property. Introducing the amendment to the Finance Bill, the Finance minister announced that taxpayers will now have the option to pay 20 per cent long term capital gain with indexation or pay 12.50 per cent tax on LTCG on property transactions as per the new rules.
What amendment did the government bring?
While presenting the amendment, the Finance minister said that investors in the real estate sector will continue to get the benefit of indexation on property sales in future. The Finance minister said, Individuals and HUFs will have the option to pay tax on long term capital gains tax on land or building assets purchased before 23 July 2024 at the rate of 12.5 per cent without indexation and 20 per cent with indexation on long term capital gains tax on sale or transfer of property, which will result in less tax burden for the taxpayers.
The middle class will benefit from the budget
In her reply to the Finance Bill, on the allegations of not reducing the tax burden on the middle class, nirmala sitharaman said, the middle class will benefit from the budget. She said that the tax burden on all taxpayers has been reduced by Rs 37,500. She said that in the new income tax regime, changes have been made in the tax slab and the standard deduction has been increased from Rs 50,000 to Rs 75,000. The deduction limit on family pension has been increased from Rs 15,000 to Rs 30,000, this will benefit the middle class. The Finance minister said, when taxes were increased during the Corona epidemic in many countries, but prime minister Narendra Modi had ordered us that the tax burden should not increase under any circumstances.
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