Ancestral/Family property taxation in budget is bad
Most important is indexation on real estate/property is gone with this budget. Now if you bought a property in 2004 for 25 lacs and plan to sell the same now. earlier you would have got benefit of indexation by way of inflation index, is now gone. So now if you sell for 2.5 crores , you shall pay LTCG on 2.25 crores. No indexation
What this will bring back?? cash dealing to avoid tax
Keep taxing the tax payers on every avenue is the mantra seems like.
Below Expectations budget more
What this will bring back?? cash dealing to avoid tax
Keep taxing the tax payers on every avenue is the mantra seems like.
Below Expectations budget more
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Inflation is not considered at all with this amendment. It will only increase tax burden. Indexation should be restored. more
Aug 22
Indexedation must be brought back. Alternatively, if you have bought House on Loan, then Interest paid against loan must be added to the buying price. more
Aug 01
One need to understand this in depth by actually calculating the tax implications. Even for those who cannot buy another house or flat. Anyways the cash in hand will higher in the new regime. more
Jul 25
The principle behind indexation is that only the real return, in excess of inflation, is subject to tax. When that principle is thrown out the window, what is the point of owning assets and incurring tax liability due to inflation which is anyway a given.. more
Aug 01
Indexation must be brought back, zt 'east till the onflation is down to less than 1.5 %. more
Jul 25
Knocking of indexation makes you pay taxes on gains that you have never earned. Indexation was meant to cover inflationary changes in the value of currency based on WPI (not retail). People fail to understand that house property has an active life-cycle and therafter the appreciation in value slows down. As per GOI information if you earn 12-16% appreciation in property value YoY, then you are better off under the new scheme of things. However, if the appreciation is anything lower than 9% YoY, you will end up paying taxes out of your capital. Most middle-class people may do one transaction of sale in their lifetime. A few may do two. Those who sell and invest the proceeds in another property do not have to pay any tax within a time window of two years after sale or one year before sale. Many people sell and may not be able to buy another house. For such people this new tax regime is a curse. Instead of having an equitable regime to tax people who actually gain, this is going to hurt many who are not the well-off. Clever people register properties in the names of small private limited companies. By transferring shares of the company, they transfer the underlying asset as well. Then these new provisions are by-passed. Also those who keep on buying more property, while disposing off their old property will never pay this tax. Many will reduce the taxes by taking part of the consideration in undocumented forms such as cash to avoid taxes. I am told that this is a bit restrive as taxes are applied on circle rates and not the reported transaction value, unless higher. In a nutshell I feel its a draconian provision which will hit people most who have one house and intend to sell and encash to raise money or are into a distress sale. more
Jul 24
Many people sell and may not be able to buy another house. For such people this new tax regime is a curse. Instead of having an equitable regime to tax people who actually gain, this is going to hurt many who are not the well-off. This is my biggest grievance. more
Jul 25
