The government has proposed significant relief for individuals who bought houses before July 23, 2024, by giving them the option to choose between two tax rates for long-term capital gains (LTCG) tax.
The Budget 2024–25 had proposed to lower the LTCG from 20 percent to 12.5 percent but removed the indexation benefits. The new rates have come into effect from July 23, 2024.
However, as per the changes brought in the 2024-25 Budget, the government has retained the indexation benefit for taxpayers on properties bought or inherited before 2001. Now the taxpayers can choose the more beneficial regime and should not be worse off because of change in law. Concerns around taxation of inflationary gains in respect of immovable property acquired prior to a change in the law have been addressed.
The Employees Provident Fund Organisation (EPFO) has floated new rules for subscribers with inactive and transaction-less accounts in a bid to curb fraud and unauthorised withdrawals. The revised standard operating procedure (SOP) has been enhanced to incorporate a stricter verification process for accounts that have been inactive for an extended period of time.