Educational guide
Capital Gains Tax in India — Complete Guide (Post Budget 2024)
The 23 July 2024 capital gains overhaul changed almost every rate. Here is the new framework, one asset class at a time.
// the new rate matrix
Listed equity & equity MF: STCG 20%, LTCG 12.5% above ₹1.25 lakh/year exemption.
Debt MF (post 1-Apr-2023): always slab rate.
Property, gold, unlisted shares: STCG at slab; LTCG 12.5% without indexation. Property purchased pre 23-Jul-2024 can opt for 20% with indexation if it produces lower tax.
// holding-period definitions
Long-term qualification: 12 months for listed equity & equity MFs; 24 months for everything else (property, gold, unlisted shares, debt MFs). Counting is exclusive of the acquisition date but inclusive of the transfer date.
// set-off and carry-forward
Short-term capital losses can be set off against both STCG and LTCG. Long-term capital losses can be set off only against LTCG. Unabsorbed losses can be carried forward for 8 assessment years.
// frequently asked questions
Yes. The equity LTCG exemption u/s 112A is independent of the income-tax regime (new or old) and applies regardless of which regime you opt for.