Nifty Realty Gains As Govt Offers LTCG Tax Relief

The realty sectoral index, Nifty Realty rallied around 2 per cent in the Wednesday trading session after the government proposed relaxation on the long-term capital gains (LTCG) tax rule levied in the Union budget 2024.

The ten stocks index, Nifty Realty traded 1.9 per cent higher in the morning session led by more than 2 per cent gains in Macrotech Developers, DLF and Oberoi Realty. 

In the Union Budget 2024, the government reduced the LTCG tax on real estate properties to 12.5 per cent from 20 per cent but slashed the indexation benefit which used to provide inflation adjusted purchasing value. 

However, after the widespread criticism, the government offered a relaxation that property owners can also avail the old regime indexation benefit with 20 per cent LTCG for the properties purchased before 23 July 2024. 

Additionally, the sellers will also have the option to avail the new rule of 12.5 per cent LTCG without indexation. 

Nifty Realty delivered more than 30 per cent return in the year 2024 so far against the 11 per cent return in Nifty 50 year-to-date (YTD). 

In terms of individual stock performance, Sobha led the YTD gains with 80 per cent return followed by more than 40 per cent YTD returns in  Phoenix Mills, Prestige Estate and Godrej Properties.