Real Estate Sector Cheers Major Tax Relief in Property Transactions

Finance Minister Nirmala Sitharaman's proposed amendment to the Finance Bill is set to provide substantial relief on capital gains tax for property transactions. Leaders in the real estate industry have lauded this move for its potential to drive investment and enhance sales across various housing segments.

Real estate industry leaders are applauding Finance Minister Nirmala Sitharaman's proposed amendment to the Finance Bill, which aims to provide significant relief on capital gains tax in property transactions.

The amendment offers taxpayers the option to calculate taxes at either 12.5% without indexation or 20% with indexation on real estate transactions involving long-term capital assets acquired before July 23, 2024. This change is expected to stimulate investment and boost sales across all housing segments, according to industry experts like Niranjan Hiranandani, Chairman of Hiranandani Group, and NAREDCO.

Ritesh Mehta, Senior Director at JLL, also praised the initiative, noting that it will particularly benefit middle-class taxpayers and maintain a positive market sentiment. The new amendment will allow taxpayers to choose the most favorable tax scheme, further increasing liquidity and optimism in the real estate sector.

(With inputs from agencies.)