Relief for homeowners likely as finance ministry may modify LTCG regime

FinMin reviews new LTCG regime after 12.5% tax without indexation sparks concerns over property transactions

One of the most hotly debated proposals of this year’s Budget may see a tweak, with the finance ministry likely to provide relief to homeowners by finetuning the new long-term capital gains (LTCG) provisions announced on July 23 that seek to remove indexation benefits for unlisted assets, including property and gold.

The changes being considered include extending the effective date of the new regime to the next financial year, instead of the day the Budget was tabled in Parliament. Besides, discussions are going on about grandfathering the purchase of all asset classes, including property, where the indexation