New Delhi, Nov. 24 -- For years, the easiest dinner-table flex in India was a line that began with "You know what I bought that flat for?" and ended with a smug smile. Real estate wasn't just an investment, it was a moral victory. Hold long enough and inflation would ensure you paid no to minimal tax. All thanks to indexation, a process that adjusts the cost of acquisition for inflation until the year of sale, effectively reducing your capital gains and the tax on them.

That quiet comfort ended last year.

The new capital-gains regime has turned one of India's oldest wealth lessons on its head. Starting 23 July 2024, property sellers face a fork in the road: either pay 12.5% tax without indexation, or stick with the old but higher rate o...