Indexation is a tax benefit under Indian income tax laws that adjusts the purchase price (or cost of acquisition) of a long-term capital asset to account for inflation. Budget 2024 revises LTCG tax on property sales, cutting indexation benefits and affecting real estate investments. Learn how this impacts your tax planning. Discover how indexation helps reduce tax liability on long-term investments by adjusting inflation. Learn about its benefits and recent changes in Budget 2024. Summary: Finance Bill, 2024 introduced key amendments to Section 112 of the Income Tax Act, reducing the long-term capital gains tax rate from 20% to 12.5% while withdrawing the indexation benefit for transfers after July 23, 2024.
