Capital Gains Tax India 2025-26: Complete Guide on LTCG, STCG, Stocks, Property & Crypto
Capital gains tax rules changed significantly in Budget 2024. This guide covers all asset classes — stocks, mutual funds, property, bonds, crypto — with current rates and filing guidance.
Capital gains tax rates after Budget 2024
Budget 2024 significantly revised capital gains tax rates effective from 23 July 2024. Here are the current rates for FY 2025-26:
| Asset Class | Holding Period for LTCG | LTCG Rate | STCG Rate |
|---|---|---|---|
| Listed equity shares / equity MF | 12 months | 12.5% (above ₹1.25L) | 20% |
| Debt mutual funds | 24 months | Slab rate (no indexation) | Slab rate |
| Unlisted shares | 24 months | 12.5% (no indexation) | Slab rate |
| Immovable property | 24 months | 12.5% (no indexation) OR 20% with indexation* | Slab rate |
| Gold / physical assets | 24 months | 12.5% (no indexation) | Slab rate |
| Bonds (listed) | 12 months | 10% (no indexation) | Slab rate |
| Crypto / VDA | Any holding | 30% flat (no indexation) | 30% flat |
Property capital gains — the indexation choice (for pre-July 2024 purchases)
Budget 2024 introduced a choice for property purchased before 23 July 2024: (a) Pay 20% LTCG with indexation benefit, or (b) Pay 12.5% LTCG without indexation. The beneficial option depends on how long you've held the property and the inflation-adjusted cost.
- Properties held for 20+ years: indexation almost always reduces tax significantly — 20% with indexation is usually better
- Properties held for 2-5 years: 12.5% without indexation may be comparable or better
- Calculate both options before deciding — the difference can be lakhs
- Properties purchased after 23 July 2024: only 12.5% without indexation applies
LTCG exemption: ₹1.25 lakh annual exemption on equity
LTCG on equity shares and equity mutual funds is exempt up to ₹1.25 lakh per financial year (raised from ₹1L in Budget 2024). Gains above ₹1.25L are taxed at 12.5%. This makes systematic partial booking of gains (tax harvesting) a useful strategy annually.
Capital gains exemptions — Section 54 and 54F
You can avoid LTCG tax on property by reinvesting in another residential house:
- Section 54: LTCG on sale of residential house — exempt if proceeds reinvested in another residential house within 2 years (purchase) or 3 years (construction)
- Section 54F: LTCG on sale of any capital asset other than residential house — exempt if entire net consideration invested in a residential house
- Section 54EC: LTCG on property — exempt if invested in NHAI/REC bonds within 6 months (max ₹50L)
- Capital Gains Account Scheme (CGAS): Park capital gains in CGAS bank account before ITR deadline if new property not yet purchased
How to set off capital gains losses
Capital loss set-off rules for FY 2025-26:
- STCL can be set off against both STCG and LTCG
- LTCL can only be set off against LTCG (not STCG)
- Unabsorbed capital losses can be carried forward for 8 years
- Crypto/VDA losses CANNOT be set off against any other income or gains
- Losses from one year cannot be set off against income of earlier years
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