Union Finance Minister Nirmala Sitharaman on July 26 said the government is open to all views and feedback on the proposed tax changes in Budget 2024, but noted that the Finance Bill is now under Parliament’s consideration and she cannot comment on it outside.
Sitharaman, during an event, was asked if the government will review the removal of indexation benefit on the sale of real estate assets after several investors and the Opposition raised concerns on the withdrawal.
“I will hear all comments and suggestions with respect to tax changes but the Finance Bill now rests with Parliament. I can’t comment on it outside."
In this year's Budget, the government has proposed to bring down the long-term capital gain tax (LTCG) rate on real estate assets to 12.5 percent from the earlier 20 percent and to drop the indexation benefit to adjust for inflation. The new rates will be applicable starting from July 23, but properties bought before 2001 will be grandfathered and protected against the latest changes.
Further, Sitharaman said taxes have not been increased because the government wants more money but to ensure equal treatment across all asset classes.
“For ease of doing business, for simplification and for rationalisation we have increased taxes and not for revenue consideration or because I want more money... The decision is based on the idea that every asset class has to be treated similarly,” Sitharaman said during an industrial interaction ‘Budget Open House’, which was organised by the RP Sanjiv Goenka group in partnership with CNBC-TV18.
The government faced a backlash following the presentation of the Budget as it announced an increase in short-term capital gain tax to 20 percent from 15 percent on equities and equity-linked mutual funds. The government has also proposed to hike LTCG tax rate to 12.5 percent from the earlier 10 percent.
The effects of these changes on the stock markets were seen on the Budget day after BSE Sensex plunged 1.6 percent during the trading hours before recovering to end flat.
Describing the budget as “futuristic,” she said that all calculations were meticulously conducted, dismissing the notion that they were “back of the envelope calculations.”
Sitharaman reaffirmed the government’s commitment to sustained capital expenditure to ensure economic recovery is sustained. She also highlighted the budget’s focus on allocating resources for imparting skills to India’s youth.
2024-07-26T05:31:25Z dg43tfdfdgfd