Oppositions parties had slammed Prime Minister Narendra Modi’s first budget since being reelected, saying it was aimed at increasing the tax burden on the middle class. - Photo: EPA-EFE
NEW DELHI: The Indian government has relaxed new property tax rules it proposed just two weeks ago, after criticism that the changes added to an already heavy financial burden on the middle class.
On July 23, India lowered the long-term capital gains tax on real estate to 12.5 per cent from 20 per cent, but dropped a benefit that allowed individuals to adjust prices for inflation before the capital gain - and so tax payable - was calculated.
Now the government is offering taxpayers the option of using the new rate or the previous 20 per cent rate with the inflation adjustment, according to a government document seen by Reuters.
Real estate assets are considered to be long-term if they have been held for at least 24 months.
The change comes after criticism from opposition parties that Prime Minister Narendra Modi’s first budget since being reelected was aimed at increasing the tax burden on the middle class.
The federal finance ministry has so far not responded to an email sent outside office hours. - Reuters
