Realtors cheer govt’s LTCG tax amendment; to lift homebuyers confidence

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Key Points

The countrys real estate players and industry experts have cheered the move as it will lift confidence of homebuyers and lift the overall industry...

Dharmendra Raichura, Vice President & Head of Finance at Ashar Group says, reinstating indexation is expected to have a significant impact, including increasing real estate investment by 20-25% according to Knight Frank, contributing to a 0.5-1% increase in GDP growth, and benefiting investors by adjusting the purchase price for inflation, reducing capital gains tax payable, and resulting in lower tax liabilities...

This amendment will mitigate the impact of potential tax hikes on older properties, support sustained growth in the real estate sector, with a reported 31% year-on-year increase in sales according to Anarock Group, and boost investment and growth, with over 10,000 monthly property registrations expected to continue..

A stable and consumer-friendly tax regime increases confidence, leading to more investment in the real estate sector, he says.. Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra, points towards the benefits of the latest move..

The adjustment in LTCG tax calculation is particularly beneficial in the current economic climate, where every financial advantage counts, says Yagnik, adding, we can expect a positive ripple effect on realty sales, as more sellers are encouraged to enter the market, leading to increased transactions and higher market activity..

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