No bleeding on Dalal Street! LTGC holding period reduced to 2 years for real estate
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The biggest nightmare for Dalal Street has been turned down in the Union Budget has been belied by Finance Minister Arun Jaitley. Jaitley has left long-term capital gains tax (LTCG) on equity investment untouched but has reduced the holding period for LTCG for immovable assets to two years.
Talking in context of real estate investment, when someone makes an investment and then sell it at a higher price to make a gain, this amount is taxable. However, if a person makes a loss, no tax is payable.
At present such gains are considered long-term capital gains if the holding period is over 3 years or more. This tenure has not been reduced to two years.
Dalal Street experts feared any tinkering with either of these tax rates or holding period could have led to a knee-jerk reaction on Dalal Street.
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Talking in context of real estate investment, when someone makes an investment and then sell it at a higher price to make a gain, this amount is taxable. However, if a person makes a loss, no tax is payable.
At present such gains are considered long-term capital gains if the holding period is over 3 years or more. This tenure has not been reduced to two years.
Dalal Street experts feared any tinkering with either of these tax rates or holding period could have led to a knee-jerk reaction on Dalal Street.
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