Capital gains tax rates (from 23 July 2024)
| Asset | Long-term after | Short-term tax | Long-term tax |
|---|---|---|---|
| Listed shares, equity mutual funds | 12 months | 20% | 12.5% above ₹1.25 lakh a year |
| Land and building | 24 months | Slab rate | 12.5% (or 20% with indexation for resident individuals/HUFs on property bought before 23 Jul 2024) |
| Gold, unlisted shares, others | 24 months | Slab rate | 12.5% without indexation |
| Debt funds bought after 1 Apr 2023 | – | Always at slab rate | |
Ways to save tax on long-term gains
- Section 54: reinvest gains from a house in another house
- Section 54EC: invest up to ₹50 lakh in specified bonds within 6 months
- Section 54F: invest sale proceeds of other assets in a house
- Book equity gains up to ₹1.25 lakh each year tax-free
Capital gains make the ITR more complex. Our ITR filing experts report them correctly.
Frequently Asked Questions
What is the LTCG exemption on shares?
Long-term gains up to ₹1.25 lakh a year on listed shares and equity mutual funds are tax-free; the rest is taxed at 12.5%.
Is indexation still available on property?
For resident individuals and HUFs selling land or buildings bought before 23 July 2024, you can choose the lower of 12.5% without indexation or 20% with indexation.
How are debt mutual funds taxed?
Units bought on or after 1 April 2023 are taxed at your slab rate regardless of holding period.
Can I set off capital losses?
Short-term losses can be set off against short or long-term gains; long-term losses only against long-term gains. Unused losses carry forward for 8 years.
This calculator gives an estimate based on the rules shown above. Rates and limits change through budgets and notifications – confirm with a professional before you file or pay.