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LTCG & STCG Tax Rules 2024-25

Capital Gains Tax Calculator

Calculate your tax liability on profits from stocks, mutual funds, property, and gold based on the latest budget updates.

Investment Details

₹10,00,000
₹15,00,000
18 Months
1 Month10 Years
Total Tax Payable
LTCG
Effective Tax Rate: 12.5%
Total Gain
₹4,90,000
Taxable Gain
₹3,65,000
Sale Value₹15,00,000

Tax Rules for Listed Equity / Equity MF

Long Term (LTCG)

Holding Period> 12 Months
Tax Rate12.5%
ExemptionUp to ₹1,25,000

Short Term (STCG)

Holding Period< 12 Months
Tax Rate20%

Budget 2024 Update

The holding period for LTCG has been simplified to 12 months for listed assets and 24 months for all other assets. The LTCG tax rate is now a flat 12.5% for most assets.

Mastering Capital Gains Tax

Capital Gains Tax is applicable on the profit earned from the sale of a 'capital asset'. These assets include stocks, mutual funds, real estate, gold, and more.

Short Term (STCG)

When an asset is sold within a short holding period. For listed stocks, this is less than 12 months. For property and gold, it's less than 24 months.

Long Term (LTCG)

When an asset is held for a longer duration. LTCG usually enjoys lower tax rates compared to STCG to encourage long-term investing.

New Rules (Post July 23, 2024)

Listed Equity: LTCG rate increased from 10% to 12.5%. Exemption limit increased from ₹1 Lakh to ₹1.25 Lakh.
Real Estate: LTCG rate reduced from 20% to 12.5%, but the benefit of indexation has been removed for properties bought after July 2024.
Debt Mutual Funds: Gains are now treated as STCG and taxed at slab rates, regardless of the holding period (for funds bought after April 1, 2023).

Frequently Asked Questions

What is the ₹1.25 Lakh exemption in Equity LTCG?

If your total Long Term Capital Gains from listed equity and equity mutual funds in a financial year is less than ₹1,25,000, you don't have to pay any tax. Tax is only applicable on the amount exceeding this limit.

Can I set off capital losses?

Yes, Short Term Capital Losses can be set off against both STCG and LTCG. However, Long Term Capital Losses can only be set off against Long Term Capital Gains.

Is indexation still available for property?

For properties acquired before July 23, 2024, taxpayers can choose between 20% tax with indexation or 12.5% tax without indexation, whichever is more beneficial.

How is the holding period calculated?

It is calculated from the date of acquisition to the date of transfer/sale of the asset.