What are the new Capital Gains Tax rates introduced in Budget 2024?

The Union Budget 2024 (effective July 23, 2024) revised capital gains tax: (1) Listed Equity & Equity MFs: STCG increased from 15% to 20%; LTCG increased from 10% to 12.5%, while the annual tax-free exemption limit was raised from ₹1,00,000 to ₹1,25,000. (2) Unlisted Equity & Gold: LTCG reduced to 12.5% without indexation. (3) Real Estate: LTCG changed to 12.5% without indexation, with grandfathering allowing 20% with CII indexation for properties acquired before July 23, 2024.

How does the Real Estate grandfathering clause work for pre-July 23, 2024 properties?

Under the August 2024 amendment to the Finance Bill, resident individuals and HUFs who bought or acquired immovable property prior to July 23, 2024 can compute their tax under two methods and pay whichever is lower: Option A: 12.5% tax without indexation benefits, OR Option B: 20% tax with Cost Inflation Index (CII) indexation benefits.

How are Debt Mutual Funds taxed under Section 50AA?

Under Section 50AA (effective April 1, 2023), mutual fund schemes investing 35% or less in domestic equity shares are deemed Specified Mutual Funds. Capital gains arising from their transfer or redemption are deemed short-term capital gains (STCG) and taxed at your applicable individual income tax slab rate, regardless of how long they are held.

What is the holding period threshold for Long-Term Capital Gains (LTCG)?

Budget 2024 streamlined holding periods into two clear tiers: (1) 12 Months: Listed Equity shares, equity-oriented mutual funds, and units of business trusts. (2) 24 Months: All other capital assets, including immovable property (real estate), unlisted shares, physical gold, and gold ETFs.

Is Health & Education Cess applicable on Capital Gains Tax?

Yes, a 4% Health and Education Cess is mandatorily applied on the total base capital gains tax. For example, a 12.5% LTCG rate effectively becomes 13.00% including cess (12.5% * 1.04), and a 20.0% STCG rate effectively becomes 20.80% including cess.

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Capital Gains Tax Calculator FY 2025-26

Calculate Short Term (STCG) and Long Term (LTCG) tax on stocks, mutual funds, real estate, and gold.

📋 Capital Gains Rates: Budget 2024 Slabs (12.5% LTCG / 20% STCG)•CBDT Official Source•Verification: Official Circular Sourced

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Budget 2024 Amendments (Effective July 23, 2024)

Capital Gains Tax Calculator (LTCG / STCG)

Compute your exact Capital Gains Tax liability under the revised Budget 2024 tax framework. Evaluates Section 112A equity exemption (₹1.25L), 12.5% LTCG, 20% STCG, Section 50AA debt mutual funds, and dual-option real estate grandfathering.

Asset Transaction Details

Asset Class / Type Holding period threshold: 12 months for LTCG (12.5% over ₹1.25L exemption), 20% STCG.

Purchase / Acquisition Cost (₹)

Initial purchase price or indexed cost base

Gross Sale Consideration (₹)

Total proceeds received from transfer

Holding Period Determination

By Months By Exact Dates

18 months (1.50 years)

Transfer Expenses / Brokerage (₹)

STT is non-deductible; brokerage & stamp duty deductible

Cost of Improvement (₹)

Capital renovation for real estate

Sec 112A LTCG Utilized this FY (₹)

Max annual exemption is ₹1,25,000

Your Income Tax Slab Rate (%) Applies to STCG on unlisted, debt & property

Tax Computation Summary

Total Capital Gains Tax Payable (Inc. Cess)

₹0

LTCG @ 12.5% (Sec 112A)

Net Capital Gain / Loss ₹0

Post-Tax Cash Proceeds ₹0

Taxable Capital Gain ₹0

Effective Tax Rate 0.0%

Statutory Provision (Budget 2024)

Loading statutory rule...

Itemized Tax Computation Ledger

Gross Sale Consideration	₹0
Less: Allowable Transfer Expenses	-₹0
Net Sale Consideration	₹0
Less: Acquisition Cost (+ Improvements)	-₹0
Gross Capital Gain / (Loss)	₹0
Less: Section 112A Statutory Exemption	-₹0
Net Taxable Capital Gain	₹0
Base Capital Gains Tax	₹0
Add: 4% Health & Education Cess	+₹0
Total Tax Liability	₹0

Budget 2024 Capital Gains Tax Framework Explained

1. Listed Equities & Mutual Funds

Budget 2024 introduced two major shifts for listed shares and equity mutual funds (effective July 23, 2024):

Short-Term Capital Gains (STCG): Raised from 15% to 20% under Section 111A (plus 4% cess).
Long-Term Capital Gains (LTCG): Raised from 10% to 12.5% under Section 112A.
Enhanced Exemption: Annual tax-free LTCG limit increased from ₹1,00,000 to ₹1,25,000 per financial year.

2. Real Estate & The Grandfathering Amendment

Long-term capital gains on immovable property were initially revised to 12.5% with the removal of indexation. Following taxpayer feedback, the government amended the Finance Bill in August 2024:

Dual Option: Resident individuals and HUFs who acquired property before July 23, 2024 can choose between 12.5% without indexation and 20% with CII indexation.
Automatic Optimization: Our calculator automatically compares both formulas and chooses the option with the lowest tax liability.

3. Debt Mutual Funds (Section 50AA)

Specified debt mutual funds (schemes having domestic equity allocation of not more than 35%):

Always classified as Short-Term Capital Gains under Section 50AA.
Taxed at the investor's applicable slab rate (e.g., 5%, 10%, 20%, or 30%).
No indexation benefit and no preferential 12.5% rate applies, regardless of holding duration.

Asset-Wise Statutory Capital Gains Tax Rates (Post-Budget 2024)

Asset Class	LTCG Holding Period	STCG Tax Rate	LTCG Tax Rate	Exemption / Special Rules
Listed Equities & Equity MFs	> 12 Months	20.0% + Cess (Sec 111A)	12.5% + Cess (Sec 112A)	₹1,25,000 annual exemption
Unlisted Equity Shares	> 24 Months	Applicable Slab Rate	12.5% + Cess	No indexation benefit
Specified Debt Mutual Funds	Deemed STCG (N/A)	Applicable Slab Rate	Applicable Slab Rate	Section 50AA statutory mandate
Real Estate (Immovable Property)	> 24 Months	Applicable Slab Rate	12.5% (No Indexation) OR 20% (With CII)	Pre-July 23, 2024 grandfathering option
Physical Gold, Silver & Gold ETFs	> 24 Months	Applicable Slab Rate	12.5% + Cess	Unified 12.5% rate without indexation

Frequently Asked Questions

When did the new Budget 2024 capital gains rates take effect?

The revised capital gains tax rates became effective on July 23, 2024. Transfers executed on or after July 23, 2024 are subject to the new 20% STCG and 12.5% LTCG rates.

Can I set off capital losses from earlier years against capital gains?

Yes. Under Section 70 and 71 of the Income Tax Act, Short-Term Capital Losses (STCL) can be set off against both STCG and LTCG. Long-Term Capital Losses (LTCL) can only be set off against LTCG. Unabsorbed losses can be carried forward for up to 8 assessment years.

What expenses are deductible from gross sale consideration?

Expenses incurred wholly and exclusively in connection with the transfer can be deducted. This includes brokerage, legal fees, stamp duty, and transfer charges. Note that Securities Transaction Tax (STT) paid on listed equity is specifically not deductible under Section 40(a)(ib).

Can I claim Section 54 or Section 54EC exemption to save capital gains tax?

Yes. If you realize long-term capital gains from real estate, you can reinvest in a residential house under Section 54 or in specified capital gains bonds (REC, PFC, NHAI) under Section 54EC (up to ₹50 Lakh per financial year) to claim full or partial exemption.