Real estate investment returns are now being evaluated on a post-tax basis as Indian investors pivot from Section 80C to strategic asset and capital allocation.

A significant ruling by the Income Tax Appellate Tribunal clarifies that indexation for Long-Term Capital Gains (LTCG) on inherited real estate must commence from the original owner’s acquisition year, not the date of inheritance. This decision offers substantial potential tax savings for heirs selling ancestral assets.

Finance Budget 2024 suggested lowering property long-term capital gains (LTCG) tax from 20% to 12.5% and eliminating indexation. This shift affects real estate investors greatly. Ghar highlights key points: