In what is being billed as a make or break Budget to revive the economy, the Modi government is likely to introduce heavy duty measures for rationalization of key equity taxes, including scrapping capital gains on sale of property, shifting the tax applicability of dividend distribution tax to the receiver and extending the timeline of long term capital capital gains tax from the current 12 months to 24 months.
The breakthrough measure, if it materializes, will be doing away with capital gains on sale of property. The move has the potential to revive the real estate sector which is in the doldrums and facing immense stress.