Government Reinstates Indexation Benefits for LTCG Tax on Property Sales
| Aspect | Details |
|---|---|
| Policy Change | Government reversed decision to remove indexation benefits for LTCG tax on property sales. |
| Effective Date | Properties acquired before July 23, 2024, are grandfathered. |
| Tax Options | Taxpayers can choose between 12.5% tax rate without indexation or 20% rate with indexation. |
| Initial Government Stance | Government initially defended removal of indexation, citing lower tax rate as compensation. |
| Public Reaction | Widespread criticism from real estate investors and property owners. |
| Government Response | Decision to restore indexation benefits in response to public backlash. |
| Impact on Taxpayers | Expected to provide significant relief to taxpayers. |