The Indian government has revised the recently proposed property tax rules, following backlash that the initial changes exacerbated the financial strain on the middle class. On July 23, India reduced the long-term capital gains tax on real estate from 20% to 12.5%, but removed a provision that permitted individuals to account for inflation before calculating the capital gain and subsequent tax. According to a government document obtained by Reuters, taxpayers can now choose between the new 12.5% rate or the old 20% rate with the inflation adjustment. Real estate assets are classified as long-term if held for a minimum of 24 months. This adjustment follows criticisms from opposition parties, suggesting that Prime Minister Narendra Modi's first budget since reelection was designed to increase the tax burden on the middle class. The federal finance ministry has yet to respond to an email sent outside regular office hours.