Rollback after criticism: Govt brings back indexation benefit on sale of property purchased before Budget

Following outrage and concerns from certain quarters over the Budget proposal to remove indexation benefits on long-term capital gains (LTCG), the government Tuesday decided to offer taxpayers a choice to pay 20 per cent LTCG tax with indexation benefit on sale of property acquired before July 23, 2024. The other option introduced in the Budget to pay the tax on LTCG at a reduced rate of 12.5 per cent without indexation will also be available to taxpayers, as per the list of amendments moved by the government in the Finance Bill. Taxpayers can pay the lower tax amount of the two options.