Capital Gains Tax in India: STCG vs LTCG Explained

What are Capital Gains?

A capital gain is the profit earned when you sell a capital asset (shares, mutual funds, property, gold) for more than its purchase price. The profit is taxed as capital gains, with the rate depending on the asset type and how long you held it.

Equity & Equity Mutual Funds (FY 2024-25)

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*Note: LTCG up to ₹1.25 lakh per year is fully exempt.*

Budget 2024 increased STCG from 15% to 20% and LTCG from 10% to 12.5%.

Debt Mutual Funds (post April 2023)

All gains on debt MFs (with < 35% in equity) are now taxed at slab rates regardless of holding period. The indexation benefit was removed.

Property

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*Budget 2024 gave taxpayers the option to choose between 12.5% without indexation or 20% with indexation for properties purchased before 23 July 2024.*

Gold

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Key Tax-Saving Strategies

1. Hold equity investments for 12+ months to get LTCG rate (12.5% vs 20%)

2. Harvest up to ₹1.25 lakh LTCG every year — it's tax-free

3. Use Section 54 / 54F to save tax on property capital gains by reinvesting in another property

Calculate your capital gains tax with the Capital Gains Calculator.