Understanding Capital Gains Tax in India

What is Capital Gains Tax?

Capital gains tax is levied on the profit earned from selling capital assets like stocks, mutual funds, property, gold, etc. The tax rate depends on the type of asset and how long you held it.

LTCG vs STCG (Post Budget 2024)

Asset Type	LTCG Period	LTCG Rate	STCG Rate
Listed Shares/Equity MF	12 months	12.5%	20%
Unlisted Shares	24 months	12.5%	Slab
Debt Mutual Funds	36 months	Slab	Slab
Real Estate	24 months	12.5%	Slab
Gold/Jewellery	24 months	12.5%	Slab

Key Exemptions

Section 112A: LTCG up to Rs 1.25 lakh on listed equity/equity MF is tax-free
Section 54: Exemption on LTCG from property if invested in new house
Section 54EC: Exemption if invested in specified bonds (NHAI, REC)
Section 54F: Exemption for non-property assets if invested in house

Budget 2024 Changes

LTCG on listed equity increased from 10% to 12.5%
STCG on listed equity increased from 15% to 20%
LTCG exemption increased from Rs 1 lakh to Rs 1.25 lakh
Indexation benefit removed for most assets
Uniform LTCG rate of 12.5% for most assets

STT (Securities Transaction Tax)

STT is applicable on listed equity transactions. If STT is paid, LTCG is taxed at concessional rates. For F&O, STT rate has been increased to 0.02% on sell side (from 0.0125%).

India Capital Gains Tax Calculator

Investment Details

Capital Gains Tax