Capital Gain computation on Land & Building after Finance Act,2024 Part 2 amendment with indexation

On July 23, 2024, the finance minister announced a significant amendment to the Income Tax Act, which has since become a subject of widespread debate. The amendment eliminates the indexation benefit on long-term capital gains (LTCG) for certain assets, replacing it with a special discounted tax rate of 12.5%. While this might seem like a simplified and potentially beneficial move at first glance, many taxpayers have criticized the change, arguing that it increases their tax liabilities in many cases.

After the criticism on removing indexation benefit, government reconsider its decision and restore the indexation back for land and building. However, this restoration came with many restrictions which are explained as follows:
1. Indexation benefit restored only for resident individual & HUF
2. Indexation benefit restored only for those assets acquire before 23 July 2024, asset acquire on or after 23 July are not eligible for indexation.
3. Benefit restored for Land & Building only.

We have explain Capital Gain computation on Land & Building after Finance Act,2024 Part 2 amendment with indexation

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[nareshgohel]

Very important and informative lecture ❤you sir ji

[LICBABA-ky]

Very informative video sir 🎉❤🎉❤🎉❤🎉❤ thanks for updating all of us 🎉❤🎉❤

[eknath]

Thanks so Much for Such a Valuable Information❤

[theekthaakgamer]

Sir mene Aaj apka course buy kr liya hai aaj se dhekna start krunga

[RAJADUGGAR]

The second proviso to Section 112 states that if the income tax computed under item B exceeds the income tax calculated based on the provisions of the Act as they existed immediately before the amendment introduced by the Finance Act, 2024, such excess shall be ignored. Section 54, on the other hand, pertains to capital gains rather than tax. Consequently, the second proviso to Section 112 requires that only the excess tax on the enhanced capital gain be disregarded, without permitting a recomputation of the capital gain itself. It must be considered that Section 54 deals exclusively with capital gains, and therefore the investment must be based on the enhanced capital gain and not the capital gain computed using the earlier method.

[pragatisharma]

Nice Explanation Sir..
Kindly make a detailed video on treatment of 54EC- investment in bonds wrt to effect of this amendment..

[kuldeepdhawan]

In case someone had a capital loss earlier and is now buting a house to sabe capital gain can that loss be adjusted.

[sujaybhakat]

So that means by going through 20% tax with index cost of purchase i can invest the capital gains amount into a residential building and pay nil tax on the sale of a land ?

[praveenagarwal]

Excellent coverage
Pl inform what will be the TDS rate, if property is purchased from NRI, after Budget-24, previously it was 20+Sc+Cess.
Thanks

[CMALALITKUMBHAR]

Old mein loss and new mein Gain aya clarity sir

[casrinivasan]

what is tax applicable when the property was purchased in 1994 and sold on 8th July 2024.

[laxmianand]

What about property purchased in the year 1979-80 fron chd housing board

[nitashasharma]

Sir can u pls guide me if property buy before 2001 then what is the treatment

[shayar_baba]

Kya treatment hogi agr Mae old property ko construction karvakar fir uski value add Karu purchase cost me to kya ye krr sakta hu ya nhi

[keyurpathak]

Sir, in case of capital gain on sale of residential property, can a person reinvest the gain in buying a residential plots where he is not going to construct any resident building in future? Plot is just for investment pupose

[sachindhiman]

KYA STCG ME SEC 54 ki exemption le sakte h?? Plz tell

[avigoel]

Sir ek shop gst registered thi, ab proprietor badal gaya h, toh kya pehle gst ko cancel karke naya banavana padega ?

[thevivahstory]

Hello sir, Can we invest capital gain of residential property into agricultural land? Or we can buy only 2 residential property or we can buy 1 residential property and 1 agricultural land? To get the exemption.

[aneetmishra]

Namaste sir, Sir assuming the assessee's income other than capital gain is less then basic exemption limit new provision mein basic exemption relief against long term capital gain milega ki nahi?
And is there any changes in provision for long term capital gain on shares in which stt is paid 112A

[NitinSingh-reuf]

Sir ek baat mere mind se skip ho rahi hai that new or old provision whenever will try tax will be zero to ye new provision kis liye bana this is my confusion 😔