Indexation Changes and Their Impact on Property Sellers Sources from Business Today TV indicate that the government is considering applying the proposed changes to indexation prospectively, starting from the financial year 2025-26, rather than implementing them immediately. This adjustment is intended to provide property sellers ample time to plan their transactions accordingly. The revised taxation...
Real Estate
What is Inheritance Tax? Inheritance tax, also known as estate duty or death tax, is a levy imposed on the estate of a deceased person before the assets are transferred to the heirs. This tax is typically calculated based on the total value of the estate, including properties, investments, and other assets. The concept behind inheritance tax is to tax the transfer of wealth from one generation to the...
The Controversial Move to Remove Indexation The 2024 budget introduced a significant change that has stirred much debate in the real estate market— the removal of indexation benefits for long-term capital gains (LTCG) on real estate. Indexation has long been a tool that helped property owners reduce their tax liabilities by adjusting the purchase price of their assets for inflation. The elimination...
Navigating the New Tax Landscape Post-Budget 2024 Selling a home can be a financially rewarding experience, but it also comes with the burden of Long-Term Capital Gains (LTCG) tax. The Budget 2024 has eliminated the indexation benefits, significantly impacting homeowners who sell their properties. This change means that sellers now face taxes on the full gains rather than the inflation-adjusted...
Budget 2024 and Its Impact on LTCG Tax The 2024 Budget introduced significant changes that shocked many property sellers, especially concerning Long-Term Capital Gains (LTCG) tax. However, there’s good news—Section 54 of the Income Tax Act still offers a way to pay zero tax on LTCG. Understanding LTCG Tax on Property Sales What Is LTCG Tax? Definition: Long-Term Capital Gains (LTCG)...
Why NRIs Are Investing in Indian Real Estate With the rapid growth of the Indian real estate market, many Non-Resident Indians (NRIs) are looking to invest in properties like flats, plots, and farmland. Whether residing in the USA, UK, Middle East, or Europe, NRIs are increasingly interested in owning property in India. 1. Understanding the Legal Framework for NRIs Purchasing Property in...
Hyderabad's Rental Market Sees a Slowdown The rental real estate market in Hyderabad, known for its rapid growth, has experienced a notable slowdown in the second quarter of 2024. This decline in rental growth is not limited to Hyderabad but is also observed in other major Indian cities. Hyderabad's Rental Growth Drops to 3% in Q2 2024 1. Overview of Q2 2024 Rental Trends Moderate Rent...
Understanding the Cost Inflation Index (CII) in India The Cost Inflation Index (CII) is a crucial tool in the Indian tax system, especially for calculating long-term capital gains on the sale of assets like real estate. It allows taxpayers to adjust the purchase price of their assets for inflation, thereby reducing the capital gains tax liability. What is the Cost Inflation Index (CII)? 1....
Understanding the Cost Inflation Index (CII) in Real Estate The Cost Inflation Index (CII) is a critical tool in the Indian real estate market, especially when it comes to calculating capital gains on property transactions. For real estate investors, property sellers, and buyers, understanding CII is essential for accurate financial planning and tax calculation. What is the Cost Inflation Index...
What is a Special Purpose Vehicle (SPV)? 1. Definition of SPV SPV Explained: A Special Purpose Vehicle (SPV) is a legal entity created solely for a specific business purpose or project. In real estate, SPVs are often established to manage and execute large-scale projects, ensuring that the financial risks and obligations are isolated from the parent company or individual investors. Separate...