FM proposes amendment to Finance Bill, 2024:

 

1.  Grandfathering provision for long-term capital gains (LTCG) on transfer of land and building acquired before 23rd July, 2024:

a.  Applicable only to resident individuals and Hindu Undivided Families (HUFs).

b.  Tax payable will be the lower of:

– 12.5% without indexation (new law)

– 20% with indexation (old law)

c.  Any excess tax under the new law over the old law (with indexation) will be disregarded.

2.  Non-residents, companies, partnership firms, LLPs, and other entities:

– No grandfathering benefit for properties acquired before 23rd July, 2024.

– Indexation benefit not available.

This amendment aims to provide tax relief for resident individuals and HUFs on LTCG from certain property transfers, while maintaining the new tax structure for other taxpayers.