Even he is not .. LTCG on Real estate earlier was 20% , he calculated as per 10% which was true for mutual funds etc. so as per old rule ltcg value= 4,00,000 Which is 1 lakh less than now. Its still a loss though
Sure but government is literally taxing everything, government wants to discourage sale of property but they don't encourage development of quality infrastructure or provide any facilities for citizens to use. Why doesn't government not even encourage basic etiquettes such as health and hygiene like singapore ??. Pay taxes like Europeans and enjoy benefits like Ugandans.
@@Duke_Of_Havoc but they get way more benefits and vastly better infrastructure with labour laws in place to support their citizens, can we say the same ?
@Arguseyed_ We will if we pay that much taxes. Healthcare, education upto high school is free in most EU countries, so what happens is the government takes more money from the EU citizens and puts that back into social schemes like those. You can't have a sustainable government that provides services like those in EU without paying up taxes. Both are completely different economic systems because of that and my original comment was meamt to point out this difference and why we shouldn't be comparig ourselves to the EU countries. Honestly, theirs system is better because they will have to pay the same taxes whether they have kids or not, so what they save monthly is mostly independent of whether someone is single or starts a family. While in India there is an incentive among working class to settle first financially and then start a family because raising children in India severely impacts the savings of an individual. That's why working class people in India are starting families later than the same group in EU. It also leads to massive illiteracy problem that we have in rural areas because major portion of people breed without giving a thought about finances in such areas, they'd have 6-8 children but can't provides decent food for all of them let alone education. If atleast people were more educated this cycle will stop in a few generations.
But the ltcg tax on property was 20% and has now been brought down to 12.5%. What differenc would that make and how does that play out in the example you've used? I was hoping that would also be covered. Because you have explained it so well, applying that what things is the government discouraging us for?
Yes brothee you'r right even i had the same doubt. According to the example of buying property, the ltcg tax was 20% and now has been reduced to 12.5% but for equity linked assets it has increased from 10% to 12.5%
Very good explanation as if an actual CA has been explaining in very simple words. But tax overall in India is really with the cost of living and services provided here. The next time the government can start asking you to pay taxes for the air we breathe and they are going to say air is scarce it is polluted and we are sending tankers from big corporations like Ambani and Adani. Why is the common man always hurt by these actions of government.
I have one confusion in the calculation of LTCG tax you showed for non-financial asset. The LTCG in the example without indexation benefit was 40,00,000 but won't the taxable income be 40,00,000-1,25,000, i.e. 38,75,000 and then 12.5% tax will be levied on the later?
Iam not defending this budget, but want to make it clear to you all that Capital gains on sale of house property has some exemption on reinvestment in a new property , subject to some conditions. Even if there is no indexation benefit now, if you satisfy those conditions, your CG wld be exempted. Hence, indexation wont affect you. And, I know not everyone sells property to reinvest.
What happens if an individual sales his 100 years old property /land ( non financial asset) in a very low price compare to market price on records. Govt gonna check indexation ? Or market price ? Or ask any questions ?
Kindly guide me what about property brought in the year 1997 I am selling my mothers commercial property how do we calculate the LTCG as we were told before the budget indexation was there but now what as he deal wl be done on August 10th 2024 Mumbai
There's an error - LTCG w/ indexation used to be taxed at 20%, after indexation removal property is taxed at 12.5%. Based on the example, tax w/ indexation is INR 4,00,000 and difference in tax is 1,00,000.
So far as property is concerned , there is going to rise in black money involvement. People are gonna do registry at much lower price and take cash overall the flow of cash in our economy may rise . It won't do much benefit to govt. except in some circumstances.
6:15 LTCG tax was 20% in old rule..Please correct it. Reference: The long-term capital gains on real estate was 20% with indexation benefits. Though LTCG has been reduced to 12.5%, there will be no indexation benefits now.
For people holding assets for the long term they should also consider the fact that a trend has been set and why wouldn't the government keep on increasing these rates further is a question I would like to pose.
Sir, I have a query. Suppose I have a piece of land measuring 1 acre, and the promoter tells me that if I sell the land to him, not only will he give me my desired money, but he will also provide me with three flats. In this case, do I have to pay Long-Term Capital Gains (LTCG) tax? Additionally, if I use that money to buy a flat, will I still have to pay some tax? Please correct me if I am mistaken..thank you.
If you re-invest your Capital Gains on Sale of Property in another Property ( Maximum 2 Properties) then it will will be exempt from Capital Gains Tax u/s 54 of IT Act to the extent the Capital Gains Amount has been Re-Invested. If any surplus Amount of Capital Gains remains Uninvested in one/two Properties then that Amount will be subjected to Capital Gains Tax @ of 12.5%.
Bro our ap entire capital lands are owned by one individual and his minions. They are constructing in the farm land which gives 3 yield a year. Please make a video on this
LTCG rate on the sale of the property was 20% with indexation, not 10%. It has been reduced to 12.5 % from 20% omitting the indexation benefit. You used 10% rate in your example for property, whereas 10% was for LTCG in equity.
People are so clever than government. Removing indexation encourage black money, and payments in cash. Worst even exchange of properties instead of cash, which would be loss for govt. One may buy flat for 1cr, but pay only the amount as per the govt rate and rest in cash. Most of the places market rate is double than the govt rate.
LTCG Tax से भी ज्यादा तकलीफ होने वाली है CG reinvestment पे !! पहले indexed cost के बाद बचा हुआ profit ही reinvest करना पडता था cg tax बचाने को !! अब बगैर indexation वाला पूरा प्रोफीट reinvest करना पडेगा !! मे अगर पैसे की जरूरत के कारण पुराना प्रॉपर्टी बेचके, indexed प्रोफीट इन्वेस्ट करके, बाकी रकम का अन्य उपयोग करना चाहता हुं, तो अब वैसा नहीं कर पाउंगा 😢 Please publish your view point on this aspect .
Please correct your info - the 1.25 lakh INR annual exemption is only applicable on LTCG. Can't disagree more with what your point about government trying to discourage frequent property selling (7:03). With the indexation there was more benefit to keeping hold of your property for the long term. Now keeping your property longer will attract more taxes. This will probably discourage people to retain their property for such long periods. Alternatively, it is also possible that the price at which property sale will be registered now will be in and around the circle rates. People will take most of their money in black
Its strange that people decide to invest in risky investments like shares and mutual funds. Its more stranger that the govt imposes tax on people taking these risks 🥴
There is no separate fund to any states... BJP never do like that but due to NDA they did to Bihar, AP it's necessary... But They always allocated through Other Projects to all states.
@@Unfollowthem people Odisha voted bjp as a result bjp get 20 MP seat out of 21 . Our tourism sector is already flourishing but due to lack of better roads connectivity, economy growth is retarded. There is no better roads, highways and no industries in Odisha. Bjp try to bring hatred politics in Odisha bringing bulldozer politics of up. If this trend continues, then next bjp can't even get a single seat from Odisha
And we dont know that within next year budget if we see these changes or not because current govt didnt have majority. Exiting times ahead 😂😂😂 Thank you sir for the detailing about it 🙇♂️🙇♂️🙇♂️🙇♂️
We middle class and we are f****** if a person lost job or any medical emergency. His only last option is to sell the land which he have or if you observe many from middle if he/she not earning enough to spend money on thier kids education their last open is selling the land.
Our government needs to find a good way to make money and make Indians completely tax free like UAE. I get the feeling that government has become like a broker. They need commission (alias tax) for everything we do. If you have already paid income tax, you should be exempted from all other taxes for the purchases you make with your own money. Give us a tax_paid number which is generated for the year for which you paid taxes. Enter that number when you make a new purchase and these other taxes should be removed from the transactions.
If govt wants a share of the capital gains then they should take a share of the capital lose while selling assets as well. Capital gains tax is unfair to be honest, especially when there is no incentive or benefit you get in return. And, if govt genuinely wanted to stabilize real estate industry then they could have simply removed indexation ONLY for property sold within 2 - 3 years, and considered indexation for long term investments. Not considering inflation is insane. This is called DAYLIGHT ROBBERY.
We must all understand that if the government imposes more taxes or hikes rates it is for our own benefit, we should not question the intent of the goverment especially this government which is doing everything in the interest of all of us .
Yes But in hidden secret Market is moving toward in digital. So Rbi can easily revoke the notes 500 ruppes frequently .. Dont knw wts their plan? Lets see... Maybe people shld hv to more focus on gold.. Coz gold is main factor for semiconductor..
Gov dont want to discourage, they want just the money! Bullshit. What if i want to sell my old house for some xyz situation , and i need money. You are directly taking double the amount now ! Good for nothing gov
Bro LTCG for Realestate was 20%. And not 10% as claimed by you. Please do you research and then make videos. You seem to have a good viewer base so please don’t misguide. Infact indexation is so trivial that it is better now than before.
Kind Note - There Has Always Been 30% Taxation on People Like Us Earning >10Lacs Ever Since 2004…, irrespective which party ruled INC or BJP… But atleast what BJP has provided for my family is sense of SECURITY, there used to be frequent chain snatching & thefts in my locality in Ghaziabad which has almost been eradicated by now… More frequent Police Patrolling & SAFETY for Ladies of my household… In addition Politically related people used to use Sirens on road and create nuisance taking pride on their CASTE IN POWER which they have banned now…And Yes My PAID TAX is atleast being used for CapEx not for freebies & SCAMS which are integral part of congress rule bcz this is how they fill up the pockets their dynastic rulers. THIS WHY I VOTED AND WILL VOTE FOR BJP… Undoubtedly they need to do much for taxation relief, like ITR / Relief on purchase of car & housing (yes on housing it is there but would be great if could increase the amount limit)…to avoid brain drain from India.
Saw a lot of explanations even of CA's, could not understand. Finally you are the saviour!
Don't defame CAs you unemployed🍷🍷
Even he is not .. LTCG on Real estate earlier was 20% , he calculated as per 10% which was true for mutual funds etc.
so as per old rule ltcg value= 4,00,000
Which is 1 lakh less than now. Its still a loss though
@@shiprasingh3293Exactly
Sure but government is literally taxing everything, government wants to discourage sale of property but they don't encourage development of quality infrastructure or provide any facilities for citizens to use. Why doesn't government not even encourage basic etiquettes such as health and hygiene like singapore ??. Pay taxes like Europeans and enjoy benefits like Ugandans.
Tax rate in Europe is around 40-55% of income. That's way too high than what we pay in India.
Big government here to enjoy your efforts
@@Duke_Of_Havoc but they get way more benefits and vastly better infrastructure with labour laws in place to support their citizens, can we say the same ?
@Arguseyed_ We will if we pay that much taxes. Healthcare, education upto high school is free in most EU countries, so what happens is the government takes more money from the EU citizens and puts that back into social schemes like those.
You can't have a sustainable government that provides services like those in EU without paying up taxes. Both are completely different economic systems because of that and my original comment was meamt to point out this difference and why we shouldn't be comparig ourselves to the EU countries.
Honestly, theirs system is better because they will have to pay the same taxes whether they have kids or not, so what they save monthly is mostly independent of whether someone is single or starts a family. While in India there is an incentive among working class to settle first financially and then start a family because raising children in India severely impacts the savings of an individual. That's why working class people in India are starting families later than the same group in EU. It also leads to massive illiteracy problem that we have in rural areas because major portion of people breed without giving a thought about finances in such areas, they'd have 6-8 children but can't provides decent food for all of them let alone education. If atleast people were more educated this cycle will stop in a few generations.
@@Duke_Of_Havoceven we pay that much taxes we get only same benefits as today we get no doubt
Most of questions of prelims comes from your videos sir but interconnected concepts question mainly comes in upsc prelims.thankyou
1.25 lakhs exemption is only for LTCG and no exemption for STCG
There is
There is exemption upto 2.5Lakh under old tax regime if your annual income is below 7Lacs
I wish you had a UPSC coaching, i would have given any amount to learn from you , God bless you sir .
Thank me ja kar payment kar de wo to Kiya nhi hoga kavi, aur any amount chala hai Dena, huh😏
Give me some money 😂
But the ltcg tax on property was 20% and has now been brought down to 12.5%. What differenc would that make and how does that play out in the example you've used? I was hoping that would also be covered. Because you have explained it so well, applying that what things is the government discouraging us for?
Thank you so much Sir for the wonderful explanation, I was actually looking for someone to explain the whole capital gains funda. 😊
Most simple explanation. Even your CA's don't explain all this. Great work.
Sir kindly provide pdf too. Highly appreciated ❤
Earlier it was 20% LTCG with Indexation. Now it has been reduced to 12.5% without Indexation. 10% LTCG was for listed securities.
Correct
Very good video. I learnt a lot. Thankyou very much sir.
Looking for this Video only ❤
Well explained. Thank you!
Hi @amitsengupta In your example you have taken LTCG as 10% but previously it was 20%. So the tax would be 4 lakh instead of 2 lakh.
Yes brothee you'r right even i had the same doubt. According to the example of buying property, the ltcg tax was 20% and now has been reduced to 12.5% but for equity linked assets it has increased from 10% to 12.5%
Well explained sir🎉
Sir please make a detailed video on each topic of budget
Informational video. Please make more videos on the budget. Maybe commenting on the intent of the govt.
Sir please come up with whole budget explanation
Hi
I have purchased gold coin in 2023, now if I sell it and wants to buy jewellery in exchange should I pay STCG??
Very good explanation as if an actual CA has been explaining in very simple words. But tax overall in India is really with the cost of living and services provided here. The next time the government can start asking you to pay taxes for the air we breathe and they are going to say air is scarce it is polluted and we are sending tankers from big corporations like Ambani and Adani. Why is the common man always hurt by these actions of government.
Thank you so much sir ❤️ you made it so easy to understand.🙏
What a great explaination my friend.
Sir please do a video about sip?
2:39 - Sir, there is no buffer (exemption limit) if sold before 1 year. So if your profit is 1L before 1 year, entire 1L is taxed at 20%.
Correct
I have one confusion in the calculation of LTCG tax you showed for non-financial asset.
The LTCG in the example without indexation benefit was 40,00,000 but won't the taxable income be 40,00,000-1,25,000, i.e. 38,75,000 and then 12.5% tax will be levied on the later?
Iam not defending this budget, but want to make it clear to you all that Capital gains on sale of house property has some exemption on reinvestment in a new property , subject to some conditions. Even if there is no indexation benefit now, if you satisfy those conditions, your CG wld be exempted. Hence, indexation wont affect you. And, I know not everyone sells property to reinvest.
You have to have all that set up before you sell re-invest. Ots actually kind of complicated
So not everyone will be exempted and profit margin in real estate always exceed 1.25 lakh so yes you are defending the budget
🙏Thank you for your effort
Sir ,the sale of agricultural land will attract capital gains tax?
What happens if an individual sales his 100 years old property /land ( non financial asset) in a very low price compare to market price on records. Govt gonna check indexation ? Or market price ? Or ask any questions ?
Sir, at least upload 4 video/week to make it more connected to you.
Yes Sir
+1
u just made it so easy
Kindly guide me what about property brought in the year 1997 I am selling my mothers commercial property how do we calculate the LTCG as we were told before the budget indexation was there but now what as he deal wl be done on August 10th 2024 Mumbai
Jai guru great master antarik pranam salute to your efforts great job 👍🏽👌🏽🌹🙏🏽
Hi sir, My shorterm capital gain is 2lak and i don't have any other incomes then As per new budget 2024 how much tax i have to pay?
I learnt a lot. Thank you
Our beloved saviour
Take a bow for explanation ❤
I have sold one property in June 2024, will I get indexation benefit or not?
7:17 definitely it will lead to more black money transaction
There's an error - LTCG w/ indexation used to be taxed at 20%, after indexation removal property is taxed at 12.5%. Based on the example, tax w/ indexation is INR 4,00,000 and difference in tax is 1,00,000.
So far as property is concerned , there is going to rise in black money involvement. People are gonna do registry at much lower price and take cash overall the flow of cash in our economy may rise . It won't do much benefit to govt. except in some circumstances.
6:15 LTCG tax was 20% in old rule..Please correct it.
Reference: The long-term capital gains on real estate was 20% with indexation benefits. Though LTCG has been reduced to 12.5%, there will be no indexation benefits now.
Very well explained. Thanks 👍
For people holding assets for the long term they should also consider the fact that a trend has been set and why wouldn't the government keep on increasing these rates further is a question I would like to pose.
Brilliant 🎉
❤❤❤ great explanation
Sir, I have a query. Suppose I have a piece of land measuring 1 acre, and the promoter tells me that if I sell the land to him, not only will he give me my desired money, but he will also provide me with three flats. In this case, do I have to pay Long-Term Capital Gains (LTCG) tax? Additionally, if I use that money to buy a flat, will I still have to pay some tax? Please correct me if I am mistaken..thank you.
Agricultural land doesn’t comes under the capital gain tax
Nirdaya Tai 🥲🥲🥲
Very clearly explained ....thanks🪷
If money after selling one house is put to buy another house, is it taxable or exempted ?
If you re-invest your Capital Gains on Sale of Property in another Property ( Maximum 2 Properties) then it will will be exempt from Capital Gains Tax u/s 54 of IT Act to the extent the Capital Gains Amount has been Re-Invested. If any surplus Amount of Capital Gains remains Uninvested in one/two Properties then that Amount will be subjected to Capital Gains Tax @ of 12.5%.
Thank u sir❤
Well explained sir 👍
Bro our ap entire capital lands are owned by one individual and his minions. They are constructing in the farm land which gives 3 yield a year. Please make a video on this
Thank you, Amit....
Thanks!
LTCG rate on the sale of the property was 20% with indexation, not 10%. It has been reduced to 12.5 % from 20% omitting the indexation benefit. You used 10% rate in your example for property, whereas 10% was for LTCG in equity.
People are so clever than government. Removing indexation encourage black money, and payments in cash. Worst even exchange of properties instead of cash, which would be loss for govt. One may buy flat for 1cr, but pay only the amount as per the govt rate and rest in cash. Most of the places market rate is double than the govt rate.
Over four decades ago, Nani Palkhivala called India as the highest taxed country. Not much has changed since then.
5:40 No 1.25lac buffer??
Government should charge income Tax on Agricultural Income, Now days Farmers are so rich without paying any income tax
Make a video regarding Tibet And Recent Tibet Resolve act by USA
Respected sir will you also start the class for Gs paper 4 please
Sir where you teaching offline.
Small error 20% on land buliding not 10%
Completed sir
Thank u sir
wait LTCG before is 20% with indexation
I thought under the old rule, the LTCG rate was 20%.
Amazing.thanks
Sir aapko har subject mein itna jyada knowledge kaise hai ????
LTCG Tax से भी ज्यादा तकलीफ होने वाली है CG reinvestment पे !! पहले indexed cost के बाद बचा हुआ profit ही reinvest करना पडता था cg tax बचाने को !! अब बगैर indexation वाला पूरा प्रोफीट reinvest करना पडेगा !! मे अगर पैसे की जरूरत के कारण पुराना प्रॉपर्टी बेचके, indexed प्रोफीट इन्वेस्ट करके, बाकी रकम का अन्य उपयोग करना चाहता हुं, तो अब वैसा नहीं कर पाउंगा 😢 Please publish your view point on this aspect .
Apnar video er opkhhai chilam
Your voice is sooo katilana 😁🤭💕
With indexation tax on capital gains on RE was 20%. I think you wrongly quoted it as 12.5%.
Please correct your info - the 1.25 lakh INR annual exemption is only applicable on LTCG.
Can't disagree more with what your point about government trying to discourage frequent property selling (7:03). With the indexation there was more benefit to keeping hold of your property for the long term. Now keeping your property longer will attract more taxes. This will probably discourage people to retain their property for such long periods. Alternatively, it is also possible that the price at which property sale will be registered now will be in and around the circle rates. People will take most of their money in black
Can anyone explain me indexation
"Everybody gangsta until mr sengupta's explanation arrives."
Its strange that people decide to invest in risky investments like shares and mutual funds.
Its more stranger that the govt imposes tax on people taking these risks 🥴
Give nothing to Odisha even after getting 20 MP and 78 Mla from Odisha.
Today, Odisha is regretting
There is no separate fund to any states... BJP never do like that but due to NDA they did to Bihar, AP it's necessary... But They always allocated through Other Projects to all states.
BJP came first time right? First time you want everything 😅. Karnataka elected them many times before, what did we get😅
@@Unfollowthem people Odisha voted bjp as a result bjp get 20 MP seat out of 21 .
Our tourism sector is already flourishing but due to lack of better roads connectivity, economy growth is retarded. There is no better roads, highways and no industries in Odisha.
Bjp try to bring hatred politics in Odisha bringing bulldozer politics of up.
If this trend continues, then next bjp can't even get a single seat from Odisha
Investor don't like the ltcg or stcg
And we dont know that within next year budget if we see these changes or not because current govt didnt have majority. Exiting times ahead 😂😂😂
Thank you sir for the detailing about it 🙇♂️🙇♂️🙇♂️🙇♂️
20% of 20lacs was in old rule not 10%
Ur my god
We middle class and we are f****** if a person lost job or any medical emergency. His only last option is to sell the land which he have or if you observe many from middle if he/she not earning enough to spend money on thier kids education their last open is selling the land.
Our government needs to find a good way to make money and make Indians completely tax free like UAE.
I get the feeling that government has become like a broker. They need commission (alias tax) for everything we do.
If you have already paid income tax, you should be exempted from all other taxes for the purchases you make with your own money.
Give us a tax_paid number which is generated for the year for which you paid taxes. Enter that number when you make a new purchase and these other taxes should be removed from the transactions.
Cribble about paying and cribble about services provided by govt as poor.If you want good service you have to pay taxes.
with indexation it is around 20%
If govt wants a share of the capital gains then they should take a share of the capital lose while selling assets as well. Capital gains tax is unfair to be honest, especially when there is no incentive or benefit you get in return. And, if govt genuinely wanted to stabilize real estate industry then they could have simply removed indexation ONLY for property sold within 2 - 3 years, and considered indexation for long term investments. Not considering inflation is insane. This is called DAYLIGHT ROBBERY.
We must all understand that if the government imposes more taxes or hikes rates it is for our own benefit, we should not question the intent of the goverment especially this government which is doing everything in the interest of all of us .
What is this random shilling?
Kash kamai pe tds na laga hota to kab ka main bank loan pay kar chuka hota…. Waise bhi tax de ke milta kya hai… 😢
I support. Bjp.. But i dint like hike in long term tax at all
Very bad.. govt is doing nothing for middle class
❤
Will gov pay back when we lose in capital gain, hey you lost you money take the percentage of loss you made.
❤❤❤❤
conclusion govt wants my money
This do nothing but increase black money
Yes
But in hidden secret
Market is moving toward in digital.
So Rbi can easily revoke the notes
500 ruppes frequently ..
Dont knw wts their plan?
Lets see...
Maybe people shld hv to more focus on gold..
Coz gold is main factor for semiconductor..
Gov dont want to discourage, they want just the money! Bullshit. What if i want to sell my old house for some xyz situation , and i need money. You are directly taking double the amount now ! Good for nothing gov
Bro LTCG for Realestate was 20%. And not 10% as claimed by you. Please do you research and then make videos. You seem to have a good viewer base so please don’t misguide.
Infact indexation is so trivial that it is better now than before.
Kind Note - There Has Always Been 30% Taxation on People Like Us Earning >10Lacs Ever Since 2004…, irrespective which party ruled INC or BJP…
But atleast what BJP has provided for my family is sense of SECURITY, there used to be frequent chain snatching & thefts in my locality in Ghaziabad which has almost been eradicated by now… More frequent Police Patrolling & SAFETY for Ladies of my household… In addition Politically related people used to use Sirens on road and create nuisance taking pride on their CASTE IN POWER which they have banned now…And Yes My PAID TAX is atleast being used for CapEx not for freebies & SCAMS which are integral part of congress rule bcz this is how they fill up the pockets their dynastic rulers.
THIS WHY I VOTED AND WILL VOTE FOR BJP…
Undoubtedly they need to do much for taxation relief, like ITR / Relief on purchase of car & housing (yes on housing it is there but would be great if could increase the amount limit)…to avoid brain drain from India.
You will own nothing and be happy
Western countries r worse compared to India