What homeowners want from Budget 2024: Higher exemption limit, shorter period for CGAS holding, bond lock-in and more
Budget 2024 scheduled in the coming weeks, the Finance Minister is expected to make announcements that will set the path for India to achieve the vision. Towards this, the government may look to providing various incentives to taxpayers, especially on capital gain taxation boosting investment and in providing stimulus to the housing sector, alleviating procedural complications and differing operations mechanics based on asset classification, holding period, etc.
Now, all eyes are on the upcoming Budget.
Budget 2024: Here is the list of expectations an individual taxpayer would have with respect to a property sale transaction.
Selling property? What is the current capital gain taxation structure?
Capital gains taxation has evolved over the years. Any profit arising from the sale of immovable property is subject to taxation as capital gains. Exemption is available in case of property held for more than 24 months (long term) provided the proceeds are reinvested in a new residential house property, or used to purchase prescribed bonds, or deposited in Capital Gain Account Scheme (CGAS) and subsequently used for construction/ purchase of house property.
Budget 2024 expectations: Rules and process where a tweak can help homeowners
a) The exemption on account of reinvestment in house property is available only if the capital gain does not exceed Rs 2 crore. With soaring prices in the housing sector, the limit can be further enhanced to enable sellers to avail exemption.
b) As reinvestment in another property could not be
