The Union Budget 2024-25 reduced long-term capital gains (LTCG) tax from 20% to _______ but removed the indexation benefit available earlier?
A12.5%
B14.5%
C16.5%
D10.5%
Answer:
A. 12.5%
Read Explanation:
The Union Budget 2024-25 reduced long-term capital gains (LTCG) tax from 20% to 12.5% but removed the indexation benefit available earlier.
The indexation benefit has been removed for most assets.
For land and building sold after July 23, 2024, the tax rate is 12.5% without indexation.
If acquired before that date, taxpayers can choose between 12.5% without indexation or 20% with indexation.
