Capital gains tax in India after Budget 2024
Quick answer: From 23 July 2024, equity STCG is 20% and LTCG is 12.5% above a ₹1.25 lakh yearly exemption. Property and gold long-term gains are taxed at 12.5% without indexation — but property bought before 23 Jul 2024 can choose the lower of 12.5% (no indexation) or 20% (with indexation).
Budget 2024 made the biggest change to capital gains tax in years, simplifying the rates but raising some of them. Here's what applies now, asset by asset.
First: short-term or long-term?
The rate depends on how long you held the asset:
| Asset | Long-term if held |
|---|---|
| Listed shares & equity mutual funds | more than 12 months |
| Property (land/building) | more than 24 months |
| Gold, debt funds, unlisted shares | more than 24 months |
Equity: shares & equity mutual funds
- Short-term (≤12 months): 20% under Section 111A (up from 15%).
- Long-term (>12 months): 12.5% under Section 112A, on gains above a ₹1.25 lakh exemption per year (up from the old ₹1 lakh).
The ₹1.25 lakh exemption is a yearly allowance across all your equity LTCG — only the gain above it is taxed.
Property
- Short-term: taxed at your normal income tax slab rate.
- Long-term, bought on/after 23 Jul 2024: 12.5% without indexation.
- Long-term, bought before 23 Jul 2024: you get a choice — pay 12.5% without indexation, or 20% with indexation — whichever gives the lower tax.
Indexation inflates your purchase cost using the Cost Inflation Index (CII) so you're taxed only on the "real" gain. For older properties with a high indexed cost, the 20%-with-indexation route can still win, which is why the calculator works out both and picks the cheaper one for you.
Gold & other assets
- Long-term (>24 months): 12.5% without indexation.
- Short-term: taxed at your slab rate.
On top of the rates, a 4% cess applies, and a surcharge may apply at higher incomes (capped at 15% on equity gains).
A quick example
Say you sell equity mutual funds and book a ₹3 lakh long-term gain this year. The first ₹1.25 lakh is exempt, leaving ₹1.75 lakh taxed at 12.5% = ₹21,875, plus 4% cess ≈ ₹22,750. The same gain taken as short-term (held under a year) would be taxed at 20% on the full ₹3 lakh — a big difference, which is why holding period matters so much.
If you made a loss
Capital losses aren't wasted — they can be set off against other capital gains and carried forward (generally up to 8 years) if you file your return on time. The calculator flags this when your figures show a loss.
Frequently asked questions
What is the LTCG tax on shares now?
For listed shares and equity mutual funds held over 12 months, long-term gains are taxed at 12.5% on the amount above a ₹1.25 lakh yearly exemption, for transfers on or after 23 July 2024.
What is the STCG tax on equity?
Short-term gains on listed shares and equity funds (held 12 months or less) are taxed at 20% for transfers on or after 23 July 2024, up from 15% earlier.
Is indexation still available on property?
For property bought before 23 July 2024, you can choose the lower of 12.5% without indexation or 20% with indexation. Property bought on or after that date is taxed at 12.5% without indexation.
How is gold taxed after Budget 2024?
Long-term gains on physical gold (held over 24 months) are taxed at 12.5% without indexation. Short-term gains are taxed at your income tax slab rate.
General explainer for transfers on or after 23 July 2024, not tax advice. Surcharge, residency and special cases can change the outcome — verify before filing and consult a professional.