I encountered an analysis about a real estate transaction where a house originally acquired for 36 lakhs in 2009 now has a market value of 60 lakhs. With indexation adjustments, its worth would have been around 88 lakhs, implying a shortfall of 28 lakhs. Although the loss can be carried forward, there is now a 12.5% tax applied on a taxable amount of 24 lakhs. Does this scenario affect your view on purchasing property when indexation benefits are no longer available?
i think property still has potential even w/o indexation, but tax bites demand extra caution. do proper research and diversfy your investments so you mitigate risks. for me, its about balancing the scales.
After closely evaluating the current landscape and drawing on my personal experience, I believe that property investment remains a worthy consideration even without the advantage of indexation. In my view, while the removal of indexation does reduce the tax efficiency over long holding periods, the inherent benefits of property—such as stable rental income and the security of a tangible asset—still provide compelling reasons to invest. It is important to conduct thorough market research and factor in device-specific risks. A well-chosen property can still serve as a robust hedge against inflation when approached with a disciplined strategy.