Capital Gains Tax in India — Complete Guide (Budget 2024 + 2025)
Capital gains tax is levied on the profit you make when selling a capital asset — stocks, mutual funds, property, gold, or crypto. The tax rate depends on the type of asset and how long you held it. Budget 2024 overhauled the entire capital gains framework, raising LTCG to 12.5%, STCG on equity to 20%, removing indexation for most assets, and standardising holding periods.
Key Budget 2024 Changes
| Asset Class | STCG Rate | LTCG Rate | Holding for LTCG |
|---|---|---|---|
| Listed Equity / Equity MF | 20% | 12.5% | 12 months |
| Debt MF (post Apr 2023) | Slab rate | N/A | |
| Unlisted Shares | Slab rate | 12.5% | 24 months |
| Real Estate | Slab rate | 12.5%* | 24 months |
| REITs / InvITs | 20% | 12.5% | 12 months |
| Listed Bonds | Slab rate | 12.5% | 12 months |
| Unlisted Bonds / MLDs | Slab rate | N/A | |
| Foreign Stocks | Slab rate | 12.5% | 24 months |
| Gold (Physical/Digital) | Slab rate | 12.5% | 24 months |
| Crypto / VDA | Flat 30% | N/A | |
| SGB (maturity) | Fully exempt | ||
*Property bought before 23 July 2024 gets a choice: 20% with indexation OR 12.5% without — whichever is lower.
₹1.25 Lakh LTCG Exemption
For listed equity shares and equity-oriented mutual funds, the first ₹1.25 lakh of long-term capital gains per financial year is completely tax-free (raised from ₹1 lakh by Budget 2024). This exemption is shared across all equity LTCG transactions in a year.
Set-Off & Carry Forward Rules
Short-term capital losses can be set off against both STCG and LTCG. Long-term capital losses can only be set off against LTCG. Unabsorbed losses can be carried forward for up to 8 assessment years. Crypto/VDA losses cannot be set off against any income.
Property — The Dual Option (Budget 2024)
If you bought property before 23 July 2024 and sell it now, you can choose between: (A) 20% tax with indexation benefit, or (B) 12.5% tax without indexation. This calculator auto-computes both options and recommends the one with lower tax.
Company Buybacks (Effective Oct 2024)
Budget 2024 shifted the tax burden of share buybacks to the investor. Any money you receive from a company buyback is now taxed as Dividend Income at your applicable slab rate. The original cost you paid to acquire those shares is treated as a Capital Loss, which can be set off against other capital gains.
Frequently Asked Questions
Common questions about capital gains tax in India for FY 2025-26.
LTCG on listed equity shares and equity mutual funds is taxed at 12.5% (raised from 10% by Budget 2024). The first ₹1.25 lakh of equity LTCG per year is exempt. STCG on equity is now 20% (raised from 15%). These rates apply from 23 July 2024.
Property sold after holding for 24+ months qualifies for LTCG. If bought before 23 July 2024, you choose between 20% with indexation or 12.5% without. If bought after that date, only 12.5% without indexation applies. STCG on property (held less than 24 months) is taxed at your income tax slab rate.
No. Under Section 115BBH, losses from Virtual Digital Assets (crypto, NFTs) cannot be set off against any other income — including capital gains from stocks or property. VDA losses also cannot be carried forward to future years. This is the strictest loss regime in Indian tax law.
Yes. For listed equity shares and equity MFs bought before 1 February 2018, the cost of acquisition is the higher of the actual purchase price or the Fair Market Value (FMV) on 31 January 2018, subject to the condition that FMV cannot exceed the sale price. This protects gains accrued before LTCG was reintroduced.
Budget 2024 standardized the LTCG rate for unlisted shares (and AIFs) to 12.5% without indexation, down from the previous 20% with indexation. The holding period to qualify for LTCG on unlisted shares remains 24 months. STCG continues to be taxed at your applicable income tax slab rate.