The Union Budget 2024 overhauled capital gains taxation in India effective from July 23, 2024. Understanding the new rates for short-term and long-term capital gains is essential for filing your ITR for FY 2025–26 (AY 2026–27). This guide covers all asset classes — stocks, mutual funds, real estate, gold, and more.
Key Budget 2024 Changes to Capital Gains Tax
- LTCG on listed equity/equity MFs raised from 10% to 12.5% (above ₹1.25 lakh exemption)
- STCG on listed equity/equity MFs raised from 15% to 20%
- Holding period for unlisted bonds/debentures for LTCG reduced from 36 months to 24 months
- Indexation benefit removed for property sales (LTCG at 12.5% flat with no indexation)
- Holding period for real estate remains 24 months for LTCG
Capital Gains Tax Rates FY 2025–26
| Asset Class | STCG (Short-term) | Holding < (months) | LTCG (Long-term) | Holding ≥ (months) |
|---|---|---|---|---|
| Listed equity shares | 20% (Sec 111A) | 12 | 12.5% above ₹1.25L (Sec 112A) | 12 |
| Equity mutual funds (≥65% equity) | 20% (Sec 111A) | 12 | 12.5% above ₹1.25L (Sec 112A) | 12 |
| Debt mutual funds (post Apr 2023) | Slab rate (no LTCG benefit) | — | Slab rate (no LTCG benefit) | — |
| Real estate (house property) | Slab rate | 24 | 12.5% (no indexation, post Jul 2024) | 24 |
| Gold / Silver (physical) | Slab rate | 24 | 12.5% (no indexation, post Jul 2024) | 24 |
| Gold ETFs / Digital Gold | Slab rate | 12 | 12.5% (post Jul 2024) | 12 |
| Unlisted equity shares | Slab rate | 24 | 12.5% (no indexation) | 24 |
| Listed bonds / debentures | Slab rate | 12 | 12.5% (no indexation) | 12 |
| Unlisted bonds | Slab rate | 24 | 12.5% (no indexation) | 24 |
Note: For real estate bought before July 23, 2024, taxpayers can CHOOSE between (a) 12.5% without indexation or (b) 20% with indexation — whichever results in lower tax. This one-time option is available for resident individuals and HUFs.
LTCG Exemption — Section 54 Series (Property Sellers)
| Section | Applicable To | Condition for Exemption |
|---|---|---|
| Sec 54 | Residential property → Residential property | Buy within 1 yr before / 2 yrs after, OR construct within 3 yrs |
| Sec 54EC | Any LTCG → NHAI / REC Bonds | Invest up to ₹50 lakh within 6 months; 5-year lock-in |
| Sec 54F | Any asset other than residential → Residential property | Must not own more than 1 house on date of transfer |
| Sec 54B | Agricultural land → Agricultural land | Buy within 2 years |
Mutual Fund Capital Gains Calculation Example
You bought equity mutual fund units worth ₹5,00,000 in May 2024 and sold them in August 2025 for ₹7,00,000 — gain of ₹2,00,000. Holding period = 15 months (LTCG). LTCG exemption = ₹1,25,000. Taxable LTCG = ₹2,00,000 − ₹1,25,000 = ₹75,000. Tax = 12.5% × ₹75,000 = ₹9,375 + cess.
Set-off and Carry Forward of Capital Losses
- Short-term capital loss (STCL) can be set off against both STCG and LTCG
- Long-term capital loss (LTCL) can only be set off against LTCG
- Losses can be carried forward for 8 assessment years
- To carry forward losses, you MUST file ITR before the due date (July 31) — belated return does not allow carry-forward
