Lok Sabha Passes Finance Bill 2024; Property Sellers Given Option To Choose Lower LTCG Tax

Finance Bill 2024 Discussion in Lok Sabha: The Lok Sabha on Wednesday passed the Finance (No.2) Bill, 2024, with amendments. As part of the amendments, the government has allowed taxpayers to compute liability on sale of land, buildings acquired before July 23, 2024, on lower of the new and old LTCG tax rates.

Finance Minister Nirmala Sitharaman on Wednesday said that the middle class has benefitted from various tax proposals in budgets under the Narendra Modi government. She also said that without drastically increasing taxes, we have brought in a simplified taxation regime and eased compliance.

FM Sitharaman was speaking in the Lok Sabha to reply on the discussion on the Finance Bill, 2024, on Wednesday.

There will be a comprehensive review of the indirect tax rate structure over the next six months and at the end of this exercise, we will have a greater simplified tax structure for our country as a whole, she said.

On indexation benefit on real estate, she said the logic of the budgetary proposal on capital gains in the Budget 2024 is to treat all asset classes equally.

“The current amendments ensure there will be no additional tax burden with regard to LTCG tax on real estate sale,” she said.

“We did not remove indexation benefit on LTCG tax to increase revenue; rollover provision exists if capital gains invested in new properties,” the finance minister added.

She said the government has also increased the exemption limit on long-term capital gains to Rs 1.25 lakh from Rs 1 lakh to benefit the middle class.

“Effective tax on annual income of Rs 15 lakh was reduced to 10 per cent in 2023 and further reduced this year as well under new income tax regime,” the finance minister said in the Lok Sabha.

She also said pending litigation and demands are sorted under Vivad se Vishwas scheme, helped the middle class and small businesses.

In the income tax refund, the finance minister said, “Refunds are issued within days, as opposed to months earlier.”

Sitharaman said that the average ITR processing time has now been reduced to just 10 days in 2023-24, compared with 93 days during 2013-14.

A total of 7,754 tax appeals will be withdrawn from various judicial fora due to upward revision of monetary limit for filing appeals. As many as 5.25 crore taxpayers or 72.8 per cent of individuals choose new I-T regime, said Sitharaman.