Capital Gains Tax Planning: Every Exemption Explained
At a Glance
| Asset Type | LTCG Threshold | LTCG Tax Rate | STCG Rate |
|---|---|---|---|
| Listed equity / equity mutual funds | 12 months | 12.5% on gains > ₹1.25 lakh | 20% |
| Immovable property | 24 months | 12.5% (no indexation — post 23.07.2024 sales) | Slab rate |
| Gold / jewellery / physical assets | 24 months | 12.5% | Slab rate |
| Unlisted shares | 24 months | 12.5% | Slab rate |
| Debt mutual funds (post 01.04.2023) | Any holding period | Always short-term — slab rate | Slab rate |
| Property purchased before 23.07.2024 | 24 months | Option: 12.5% without indexation OR 20% with indexation — whichever is lower | Slab rate |
| Maximum exemption — Sections 54/54F | Per transaction | ₹10 crore | — |
| Maximum investment — Section 54EC | Per financial year | ₹50 lakh | — |
The Capital Gains Framework — How It Changed After 23 July 2024
The Union Budget 2024 (Finance Act 2024) introduced sweeping changes to capital gains taxation, effective 23 July 2024. These changes continue unchanged for Tax Year 2026-27.
LTCG on many assets is now taxed at a uniform 12.5%. For equity, the exemption limit has been raised to ₹1.25 lakh, giving small investors more relief. For property purchased before 23 July 2024, taxpayers can choose between paying 12.5% without indexation or 20% with indexation.
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