Attention NRIs: Flat 12.5% LTCG Tax Now Applies on Property Sales in India – No More Indexation Benefit | Here's How You Can Still Save Taxes
📢 Attention NRIs: Flat 12.5% LTCG Tax Now Applies on Property Sales in India – No More Indexation Benefit | Here's How You Can Still Save Taxes A major update in real estate taxation for Non-Resident Indians (NRIs) came into effect in the second half of 2024 — and it’s already impacting property sellers in 2025. If you’re planning to sell property in India this year, be aware of the new flat Long-Term Capital Gains (LTCG) tax rate of 12.5% — and more importantly, the removal of the indexation benefit . This change, introduced through the Finance Act, 2024 , applies to all property sale transactions by NRIs from July 23, 2024, onward . 📌 What Has Changed? 🔴 Before July 2024: LTCG Tax Rate : 20% Indexation Benefit : ✅ Available 🟡 After July 23, 2024: LTCG Tax Rate : ✅ Flat 12.5% Indexation Benefit : ❌ Not Available This means capital gains are now calculated as: Sale Price – Actual Purchase Price (No inflation adjustment) 📉 Real Impact Even with a...