Budget 2023: Capital gains cap at Rs 10 crore to hit luxury home sales

The capping of capital gains at Rs 10 crore for house property is expected to hit sales of ultra-luxury homes, according to industry experts.

The finance minister on Wednesday proposed to limit deductions from capital gains on investment in residential houses under Sections 54 and 54F to Rs 10 crore.

Since ultra-luxury homes are mostly in metros and tier-I cities, the proposal was likely to impact the market for such properties, experts said.

“The capping of the capital gains benefit at a maximum of Rs 10 crore for house property will have a negative impact for the demand for ultra-luxury