Capital Gains Tax in India: Complete Guide for FY 2025-26
Capital gains tax is levied on the profit earned from the sale of a capital asset — including stocks, mutual funds, real estate, gold, and bonds. The Union Budget 2024 introduced landmark changes to India's capital gains taxation framework, simplifying rates and removing the indexation benefit for most asset classes.
Key Changes in Budget 2024 (Finance Act 2024)
- Equity LTCG rate increased to 12.5%: Previously 10% (above Rs 1 lakh exemption), LTCG on listed equity shares and equity-oriented mutual funds is now taxed at 12.5% for gains exceeding Rs 1.25 lakh.
- Equity STCG rate increased to 20%: Short-term capital gains on listed equity, previously taxed at 15%, are now taxed at 20%.
- Indexation benefit removed: For all asset classes — including property and gold — the indexation benefit has been removed. A uniform LTCG rate of 12.5% applies without indexation.
- Property holding period reduced to 24 months: Previously 36 months.
Real Estate Capital Gains
Property gains are subject to a 12.5% LTCG rate without indexation for sales on or after 23 July 2024. STCG on property is taxed at your income tax slab rate. Taxpayers can still avail exemptions under Section 54 (reinvestment in residential property) and Section 54EC (investment in specified bonds within 6 months of sale, up to Rs 50 lakh).
Sovereign Gold Bonds
SGBs are unique: if held till maturity (8 years), the capital gain is entirely exempt from tax. If sold on the secondary market before maturity, gains are treated as regular capital gains.
Disclaimer
This calculator is based on the capital gains provisions as amended by the Finance Act 2024. It does not account for grandfathering provisions, Section 54/54EC exemptions, or NRI-specific surcharge rules. Consult a tax professional for comprehensive capital gains planning.