On 23rd July 2024, the budget presented by our FM changed the whole capital gains structure in a massive way. Capital gains include both short term capital gains (STCG) and long term capital gains (LTCG). Short term capital gains (STCG) and long term capital gains (LTCG) applies mostly on listed assets and unlisted assets both.
Listed assets include shares / stocks / equities, equity based mutual funds, debts based mutual funds, non-equity based mutual funds, listed bonds, REITs (Real estate investment trusts) or InVITs (Infrastructure investment trusts), Equity FoFs (Fund Of Funds), ETFs (exchange-traded fund) like Gold ETFs, Silver ETFs, Foreign FoFs (Fund Of Funds), Gold based mutual funds etc.
Unlisted assets include Real estate (physical), Gold (physical), unlisted stocks, unlisted bonds, foreign debts, foreign equities etc.
STCG tax, LTCG tax on Real Estate (physical) / Land / Flat / Building:
In case of Real Estate (physical) / Land / Flat / Building, the holding period for short term capital gain tax is kept unchanged at 24 months. The STCG (short term capital gain) tax on Real Estate (physical) / Land / Flat / Building has been kept unchanged to applicable ‘income tax slab rate’.
The LTCG (long term capital gain) tax on Real Estate (physical) / Land / Flat / Building has been revised and been given 2 options.
- If the property has been bought before 23.07.2024, then he or she can choose and pay the lowest of 2 below options:
- Either he has to choose 12.5% without indexation,
- or he has to choose 20% with indexation.
- If the property has been bought on or after 23.07.2024, then he or she has to pay at the rate of 12.5% without indexation
STCG tax, LTCG tax, exemption on Listed Equity and Mutual fund (Equity):
In case of Listed Equity and Mutual fund (Equity), the holding period for short term capital gain tax is kept unchanged at 12 months. The STCG (short term capital gain) tax on Equity and Mutual fund (Equity) has been increased to 20% from earlier 15%. The LTCG (long term capital gain) tax on Equity and Mutual fund (Equity) has been increased to 12.5% from earlier 10%. But, the exemption limit on Listed Equity and Mutual fund (Equity) products has been hiked to 1.25 lakh from earlier 1 lakh in a financial year.
STCG tax, LTCG tax, exemption on Listed REITs (Real estate investment trusts) or InVITs (Infrastructure investment trusts):
In case of Listed REITs (Real estate investment trusts) or InVITs (Infrastructure investment trusts), the holding period for short term capital gain tax has been changed to 12 months from earlier 36 months. The STCG (short term capital gain) tax on REITs (Real estate investment trusts) or InVITs (Infrastructure investment trusts) has been increased to 20% from earlier 15%. The LTCG (long term capital gain) tax on REITs (Real estate investment trusts) or InVITs (Infrastructure investment trusts) has been increased to 12.5% from earlier 10%. But, the exemption limit on Listed REITs (Real estate investment trusts) or InVITs (Infrastructure investment trusts) products has been hiked to 1.25 lakh from earlier 1 lakh in a financial year.
STCG tax, LTCG tax on Listed Mutual fund (Debt) and Mutual fund (Non-Equity):
In case of Listed Mutual fund (Debt) and Mutual fund (Non-Equity), the holding period is not applicable for capital gain tax. The STCG (short term capital gain) tax on Mutual fund (Debt) and Mutual fund (Non-Equity) has been kept unchanged to ‘income tax slab rate’. The LTCG (long term capital gain) tax on Mutual fund (Debt) and Mutual fund (Non-Equity) has been kept unchanged to ‘income tax slab rate’.
STCG tax, LTCG tax on Mutual fund (Gold) or Gold fund:
In case of Mutual fund (Gold) or Gold fund, the holding period for short term capital gain tax has been changed to 24 months from earlier 36 months. The STCG (short term capital gain) tax on Mutual fund (Gold) or Gold fund has been kept unchanged to ‘income tax slab rate’. The LTCG (long term capital gain) tax on Mutual fund (Gold) or Gold fund has been changed to 12.5% from earlier applicable ‘income tax slab rate’.
STCG tax, LTCG tax on Gold ETF and Silver ETF:
In case of Gold ETF and Silver ETF, the holding period for short term capital gain tax has been changed to 12 months from earlier 36 months. The STCG (short term capital gain) tax on Gold ETF and Silver ETF has been kept changed to 20% from earlier applicable ‘income tax slab rate’. The LTCG (long term capital gain) tax on Gold ETF and Silver ETF has been changed to 12.5% from earlier applicable ‘income tax slab rate’.
STCG tax, LTCG tax on Listed Bonds:
In case of Listed Bonds, the holding period for short term capital gain tax is kept unchanged at 12 months. The STCG (short term capital gain) tax on Listed Bonds has been kept changed to 20% from earlier applicable ‘income tax slab rate’. The LTCG (long term capital gain) tax on Listed Bonds has been changed to 12.5% from earlier 10%.
STCG tax, LTCG tax on Sovereign Gold bond:
In case of Sovereign Gold bond, the holding period has been changed to 12 months from earlier 36 months. The STCG (short term capital gain) tax on Sovereign Gold bond has been kept unchanged to ‘income tax slab rate’. The LTCG (long term capital gain) tax on Sovereign Gold bond has been changed to 12.5% from earlier 20%.
STCG tax, LTCG tax on Equity FoFs (Fund Of Funds):
In case of Equity FoFs (Fund Of Funds), the holding period for short term capital gain tax changed to 24 months from earlier 36 months. The STCG (short term capital gain) tax on Equity FoFs (Fund Of Funds) has been kept changed to 20% from earlier applicable ‘income tax slab rate’. The LTCG (long term capital gain) tax on Equity FoFs (Fund Of Funds) has been changed to 12.5% from earlier applicable ‘income tax slab rate’.
STCG tax, LTCG tax on Overseas FoFs (Fund Of Funds):
In case of Overseas FoFs (Fund Of Funds), the holding period for short term capital gain tax changed to 24 months from earlier 36 months. The STCG (short term capital gain) tax on Overseas FoFs (Fund Of Funds) has been kept unchanged to applicable ‘income tax slab rate’. The LTCG (long term capital gain) tax on Overseas FoFs (Fund Of Funds) has been changed to 12.5% from earlier applicable ‘income tax slab rate’.
STCG tax, LTCG tax on Unlisted Bonds:
In case of Unlisted Bonds, the holding period is not applicable for capital gain tax. The STCG (short term capital gain) tax on Unlisted Bonds has been kept unchanged to applicable ‘income tax slab rate’. The LTCG (long term capital gain) tax on Unlisted Bonds has been kept unchanged to applicable ‘income tax slab rate’.
STCG tax, LTCG tax on Gold (physical):
In case of Gold (physical), the holding period has been changed to 24 months from earlier 36 months. The STCG (short term capital gain) tax on Gold (physical) has been kept unchanged to ‘income tax slab rate’. The LTCG (long term capital gain) tax on Gold (physical) has been changed to 12.5% from earlier 20%.
STCG tax, LTCG tax on Unlisted Stocks:
In case of Unlisted Stocks, the holding period is kept unchanged at 24 months. The STCG (short term capital gain) tax on Unlisted Stocks has been kept unchanged to ‘income tax slab rate’. The LTCG (long term capital gain) tax on Unlisted Stocks has been changed to 12.5% from earlier 20%.
STCG tax, LTCG tax on Foreign equities, Foreign Debt:
In case of Foreign equities, Foreign Debt, the holding period is kept unchanged at 24 months. The STCG (short term capital gain) tax on Foreign equities, Foreign Debt has been kept unchanged to ‘income tax slab rate’. The LTCG (long term capital gain) tax on Foreign equities, Foreign Debt has been changed to 12.5% from earlier 20%. In case of Any other capital asset, the holding period for short term capital gain tax changed to 24 months from earlier 36 months. The STCG (short term capital gain) tax on Any other capital asset has been kept unchanged to applicable ‘income tax slab rate’. The LTCG (long term capital gain) tax on Any other capital asset has been changed to 12.5% from earlier 20%.
Listed assets – STCG & LTCG and holding period details:
| STCG New | STCG Old | STCG New – Holding period | STCG Old – Holding period | LTCG New | LTCG Old | |
| Equity, Mutual fund (Equity) | 20% | 15% | 12 months | 12 months | 12.5% (>1.25 lakh) | 10% (>1 lakh) |
| REITs, InVITs | 20% | 15% | 12 months | 36 months | 12.5% (>1.25 lakh) | 10% (>1 lakh) |
| Mutual fund – Debt, Non-Equity | IT Slab rate | IT Slab rate | For all period | For all period | IT Slab rate | IT Slab rate |
| Mutual fund (Gold) / Gold fund | IT Slab rate | IT Slab rate | 24 months | 36 months | 12.50% | IT Slab rate |
| Gold ETF, Silver ETF | 20% | IT Slab rate | 12 months | 36 months | 12.50% | IT Slab rate |
| Bonds (Listed) | 20% | IT Slab rate | 12 months | 12 months | 12.50% | 10% |
| Sovereign Gold bond | IT Slab rate | IT Slab rate | 12 months | 36 months | 12.50% | 20% |
| Equity FoFs (Fund Of Funds) | 20% | IT Slab rate | 24 months | 36 months | 12.50% | IT Slab rate |
| Overseas FoFs (Fund Of Funds) | IT Slab rate | IT Slab rate | 24 months | 36 months | 12.50% | IT Slab rate |
Unlisted assets – STCG & LTCG and holding period details:
| STCG New | STCG Old | STCG New – Holding period | STCG Old – Holding period | LTCG New (w/o indexation) | LTCG Old (with indexation) | |
| Real Estate (physical) / Land / Flat / Building | IT Slab rate | IT Slab rate | 24 months | 24 months | 12.50% | 20% |
| Bonds (unlisted) | IT Slab rate | IT Slab rate | For all period | For all period | IT Slab rate | IT Slab rate |
| Gold (physical) | IT Slab rate | IT Slab rate | 24 months | 36 months | 12.50% | 20% |
| Stocks (unlisted) | IT Slab rate | IT Slab rate | 24 months | 24 months | 12.50% | 20% |
| Foreign equities, Foreign Debt | IT Slab rate | IT Slab rate | 24 months | 24 months | 12.50% | 20% |
| Any other capital asset | IT Slab rate | IT Slab rate | 24 months | 36 months | 12.50% | 20% |
Disclaimer: Kindly refer official website before investing.