Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
What changed
A single 12.5% LTCG rate across asset classes, indexation removed for most assets, the listed-equity exemption raised to ₹1.25 lakh, and STCG on listed shares up to 20%.
Property exception
Resident individuals/HUF who bought property before 23 July 2024 may still opt for 20% with indexation if it works out lower. Confirm per the current Finance Act.
What it means for different assets
The change simplified the rates but removed a benefit, and the effect differs by asset. For listed equity and equity funds, long-term tax rose slightly to 12.5% but the annual exemption went up to ₹1.25 lakh, and short-term rose to 20%. For property, gold, unlisted shares and other long-term assets, the rate fell to a flat 12.5% but indexation — which used to inflate the cost for inflation and shrink the gain — was removed, so the outcome depends on how long you held and how much prices rose. To soften this for real estate, resident individuals and HUFs who bought property before 23 July 2024 may choose the old 20%-with-indexation method if it gives a lower tax, an option worth computing for older holdings. The holding-period rules also tidied up: 12 months for listed securities, 24 months for everything else (including property and unlisted shares), with the earlier 36-month category gone. All of this applies to transfers on or after 23 July 2024; anything sold before uses the old rates, so a return covering that date needs gains split accordingly. The practical takeaway is to compute property gains both ways where the option exists. Confirm the figures per the current Finance Act.