Congress calls for extension of Indexation benefits to saving schemes, fixed deposits

New Delhi: The Congress on Wednesday said that the government's proposal of offering two tax rates for long-term capital gains tax (LTCG) on properties is not enough and demanded that the indexation benefits be extended for other forms of savings including stocks, debts, fixed deposits and other similar investment tools.

Professionals' Congress chairman Praveen Chakravarty said that the two options for individuals was a welcome move and this would help 7 crore taxpayers population in getting rebates while filing their income tax returns.

"Leader of the Opposition Rahul Gandhi in his response to the Union Budget categorically said in Parliament that this was a betrayal of the middle class through removal of indexation and higher taxes on their savings and investment gains," he pointed out, in an official statement.

"Through removal of indexation and increase in capital gains taxes, the taxes of salaried professionals through investment gains went up dramatically. Already, the middle class and the salaried professionals are bearing the brunt of taxation under Modi government because for the first time in India, total income taxes paid by middle-class individuals are higher than taxes paid by rich corporates," he further added.

Notably, his remarks came in the backdrop of the government allowing taxpayers to pick between two long-term property transactions and two tax rates for LTCG taxes.

Earlier, the Union Budget proposed to levy 12.5 per cent long-term capital gains (LTCG) tax rate without indexation for properties purchased before July 23, 2024.

Now, the Centre has brought an amendment to the Finance Bill 2024 and allowed taxpayers to select either 12.5 per cent long-term capital gains (LTCG) tax rate without indexation or a 20 per cent rate with indexation for property acquired before July 23 this year.