Indian realty stocks tank as budget change seen leading to higher sales tax

Lodha Developers

23/07/2024 10:15

(Updates)
    ** India's Nifty realty index  .NIFTYREAL  reverses early
gains to trade 3.2% lower, on track for worst day since June 4 
    ** Government cuts long term capital gains tax (LTCG) on
property sales to 20% (with indexation) to 12.5% (without
indexation)
    ** Indexation allows raising the purchase price of an
investment to adjust for inflation, which would mean a lower
profit at sale, leading to lower taxes
    ** The indexation removal could lead to higher taxable
gains, especially for properties held for a long time, said Amit
Maheshwari, tax partner at AKM Global
    ** DLF  DLF.NS  fall 4.5%, while Brigade  BRIG.NS ,
Macrotech  MACE.NS  and Godrej Properties  GODR.NS  drop 3.5%-4%
    ** Realty stocks had risen earlier after the government
allocated 10 trln rupees ($119.6 bln) in urban housing boost
 
 ($1 = 83.6410 Indian rupees)

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))