Capital Gains Tax in India: The Complete Post-Budget 2024 Blueprint
The Finance Act 2024 simplified Indian capital gains taxation into two broad holding buckets while eliminating the indexation benefit for real estate and unlisted assets.
Key Overhauls in the Capital Gains Regime
Listed Equities & Equity Mutual Funds: Short-term capital gains (holding < 12 months) increased from 15% to 20%. Long-term capital gains (holding > 12 months) increased from 10% to 12.5%, while the annual exemption threshold rose from ₹1,00,000 to ₹1,25,000.
Real Estate & Immovable Property: Holding threshold unified at 24 months. For properties acquired after July 23, 2024, LTCG is 12.5% without indexation. For properties acquired prior to July 23, 2024, individuals can choose between 12.5% without indexation or 20% with indexation.
Key Practical Takeaways:
Capital Gains Tax Matrix (Post July 23, 2024)
| Asset Class | Long-Term Holding Period | New LTCG Rate | New STCG Rate |
|---|---|---|---|
| Listed Equity Shares | > 12 Months | 12.5% (Above ₹1.25L) | 20% |
| Equity Mutual Funds | > 12 Months | 12.5% (Above ₹1.25L) | 20% |
| Real Estate (Post 23 July) | > 24 Months | 12.5% (No Indexation) | Slab Rate |
| Unlisted Equity Shares | > 24 Months | 12.5% | Slab Rate |
Common Questions on This Topic
Can I offset short term capital losses against long term capital gains?
Yes. Short Term Capital Loss (STCL) can be set off against both STCG and LTCG. However, Long Term Capital Loss (LTCL) can ONLY be set off against LTCG.
Interactive Calculators for This Guide
Stock Average & Valuation Calculator
Calculate weighted average buy price with advanced P/E, EPS, PEG, and target price projection analysis.
Income Tax Calculator (Old vs New Regime)
Compare tax liability between Old and New Tax Regime for FY 2024-25 & FY 2025-26 with Section 87A rebate.