Removal Of Indexation Benefits Will Help Most Tax Payers, Says FM Nirmala Sitharaman

The government’s shock move to end indexation benefits on several long term capital gains while lowering the tax to 12.5% from 20% has taken most by surprise. There’s fear that the move could considerably hike the tax outgo of those selling their house property. Finance Minister Nirmala Sitharaman in her post-budget press briefing addressed the concerns saying that the government’s decision will benefit most taxpayers. Finance Ministry officials also explained the logic behind increasing the short-term capital gains tax.