New Click here to enroll in UIICL SO Finance and Investment Course

    Register

    Question

    What is the main benefit of the LTCG Amendment for properties purchased before July 23, 2024?

    A It reduces the tax rate to 5% for all properties. Correct Answer Incorrect Answer
    B It allows property owners to choose between a lower tax rate without indexation or a higher tax rate with indexation. Correct Answer Incorrect Answer
    C It eliminates the capital gains tax entirely for properties purchased before July 23, 2024. Correct Answer Incorrect Answer
    D It increases the capital gains tax rate to 20% for all properties. Correct Answer Incorrect Answer
    E It provides a new tax benefit exclusively for properties purchased after July 23, 2024. Correct Answer Incorrect Answer

    Solution

    The LTCG Amendment offers flexibility by allowing property owners who purchased properties before July 23, 2024, to choose between two tax calculation methods. They can opt for a lower tax rate of 12.5% without indexation or a higher rate if it exceeds 20% with indexation. This flexibility is designed to minimize tax liability and maintain fairness across different asset classes while addressing concerns related to the removal of indexation benefits. Properties bought on or after July 23, 2024, are not eligible for these indexation benefits.

    Practice Next