Quick Answer: Short-term capital gains (STCG) on listed equity/equity mutual funds held ≤12 months are taxed at 20% (from Budget 2024). Long-term capital gains (LTCG) on equity held >12 months are exempt up to ₹1.25 lakh per year; gains above ₹1.25 lakh are taxed at 12.5% without indexation (Budget 2024 change). For property and other assets, holding period is 24 months for LTCG.
Capital Gains Tax in India — Budget 2024 Changes
Budget 2024 significantly revised capital gains tax rates. LTCG on equity was raised from 10% to 12.5%, STCG on equity from 15% to 20%, and LTCG on all other assets (debt, property, gold) was standardised at 12.5% without indexation (for assets purchased after July 23, 2024).
Capital Gains Tax Rates — FY 2025-26
| Asset | Holding Period (LT) | STCG Rate | LTCG Rate |
|---|---|---|---|
| Listed Equity / Equity MF | >12 months | 20% | 12.5% (₹1.25L exempt) |
| Debt MF / Bonds | >24 months | Slab rate | 12.5% (no indexation) |
| Immovable Property | >24 months | Slab rate | 12.5% (no index) or 20% (with index) — lower |
| Physical Gold / Gold ETF | >24 months | Slab rate | 12.5% |
Frequently Asked Questions
Yes. For property purchased before July 23, 2024, you can choose between: Option A — 20% LTCG with indexation (CII-adjusted cost), or Option B — 12.5% LTCG without indexation. You should pay whichever results in lower tax.
Short-term capital losses can be set off against both short-term and long-term capital gains. Long-term capital losses can only be set off against long-term capital gains (not STCG). Unabsorbed losses can be carried forward for 8 years.