Raghav Chadha On Indexation Benefit: Opposition parties are continuously opposing the decision of the Central Government to remove the indexation benefit for calculating the Long Term Capital Gain Tax on the sale of property. In this episode, Aam Aadmi Party leader Raghav Chadha also opposed it in the House on Thursday (July 25).
Raghav Chadha said, ‘All over the world investors are encouraged to invest but in this country investors are being discouraged by removing indexation. Indexation is necessary for long term capital investment and I would request the government not to remove it.’
What did Raghav Chadha demand?
Aam Aadmi Party MP Raghav Chadha said, ‘Removing indexation is not imposing tax but punishing investors. Inflation eats up money, that is why we calculate capital gains tax by indexing the cost of acquisition. Removing indexation is like robbing the pockets of the investors of this country.’
This apprehension was expressed in the House
He said, ‘I predict in this house that if you do not reinstate indexation, three things are going to happen. First, investment in real estate is going to fall and people will never be able to buy their dream home. Second, there will be undervaluation of property deals, everyone will buy and sell property at circle rate and no one will tell the actual rate and the third thing that is going to happen in this country is that a huge amount of black money is going to come in the real estate sector, if you do not reinstate this decision of indexation.’
What did Nirmala Sitharaman say?
Finance Minister Nirmala Sitharaman has reduced the long term capital gain tax on property sale from 20% to 12.50% but has said that the benefit of indexation will not be available. Let us tell you that after this decision of the Center, there is chaos in the entire real estate sector.
Also read: Income Tax Department clarified on ending indexation on selling property, said – there will be benefit from reduction in LTCG rate
