Monica Malik Instagram – In the Budget 2024, the government lowered the long-term capital gains tax on property from 20% to 12.5%, but also removed the benefit of inflation adjustment.
But the new changes in Finance Bill gives people two options to choose from:
👉》20% long term tax with Inflation adjustment
👉》12.5% long term tax without Inflation adjustment
In case you have bought your property after 23rd July 2024, you have pay your tax only with the 2nd option.
Here are two cases to see which one is better for you:
✅Case 1- Property bought in 2002
👉Let’s say you bought a property in January 2002 for ₹10 lakh and sold it in August 2024 for ₹50 lakh.
👉Due to inflation, the value of that ₹10 lakh property has now become approximately ₹36.3lakh.
👉Profit with Indexation : ₹50 lakh – ₹36.3 lakh = ₹13.7lakh
👉Profit without indexation : ₹50 lakh – ₹10 lakh = ₹40 lakh
👉Old Scheme: 20% tax on ₹13.7 lakh = ₹2.74 lakh
👉New Scheme: 12.5% tax on ₹40 lakh = ₹5 lakh
🏆Here, the Old Scheme is better for you.
✅Case 2- Property bought in 2014
👉Let’s say you bought a property in January 2014 for ₹10 lakh and sold it in August 2024 for ₹50 lakh.
👉Due to inflation, the value of that ₹10 lakh property has now become approximately ₹16.5 lakh.
👉Profit with Indexation : ₹50 lakh – ₹16.5 lakh = ₹33.5 lakh
👉Profit without Indexation : ₹50 lakh – ₹10 lakh = ₹40
👉Old Scheme: 20% tax on ₹33.5 lakh = ₹6.7lakh
👉New Scheme: 12.5% tax on ₹40 lakh = ₹5 lakh
🏆Here, the New Scheme is better for you.
So the thing is simple, calculate your best possible tax savings under both schemes and choose the one that benefits you.
[ property, propertyinvestment, propertyforsale, properties, sale, sell, buy, invest, tax, save, reels, prettymuchfinance ]
#property #propertyinvestment #propertyforsale #properties #sale #sell #buy #invest #tax #save #reels #prettymuchfinance | Posted on 09/Aug/2024 16:56:44
