India Is Set To Overtake Japan as Asia's Second Largest Economy by 2030

By Consultants Review Team Tuesday, 24 October 2023

According to S&P Global Market Intelligence's latest PMI, China will be the world's third-largest economy by 2030, with a GDP of $7.3 trillion. Following two years of high economic growth in 2021 and 2022, the Indian economy has shown maintained good growth in the calendar year 2023.

India's GDP is predicted to rise 6.2-6.3 percent in the fiscal year ending March 2024, making it the fastest-growing major economy this fiscal year. In the April-June quarter, Asia's third-largest economy increased by an impressive 7.8 percent.

When you sell your residential house property ("RHP"), you must calculate your long-term capital gains using the methodology prescribed in section 48 of the Income Tax Act [i.e., sale consideration (net of transfer expenses) minus indexed cost of acquisition/improvement] and pay tax on the capital gains so calculated.

However, because you intend to buy another RHP, you can save/reduce your tax burden arising from the transfer of your residential property by claiming the exemption provided by Section 54 of the Income Tax Act.

It is worth noting that, according to Section 54, an individual can avoid long-term capital gains on the sale of a RHP by purchasing a new RHP in India within one year before the transfer, or within two years of the transfer date, or by constructing a RHP in India within three years of the transfer date.

As a result, if you buy a new RHP within the time period, you will be able to claim the exemption up to the amount of your capital gains or investment in the new flat, whichever is less. As a result, the residual value, if any, will be liable to capital gains tax.


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