Doing Business in India: How New Tax Rules Are Making Real Estate More Attractive for Homebuyers

Owning a home is a lifelong dream for many people in India, but due to financial constraints, it remains out of reach for many. While some are fortunate to inherit ancestral property, others work hard to save enough to buy or build their own homes. To support homeownership, the Indian government has provided various tax benefits through Sections 54 and 54F of the Income Tax Act of 1961. These sections offer exemptions on capital gains tax when selling property or other long-term assets, provided the gains are reinvested in residential property. While these tax breaks were originally intended to help people secure homes, recent reforms aim to prevent the misuse of these benefits by those looking to save on taxes rather than buy a home to live in.

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