Frequently Asked Questions
What is the LTCG tax on listed equity and equity mutual funds? ＋
Long-term capital gains (holding period over 1 year) on listed equity shares and equity-oriented mutual funds are taxed at 12.5% on gains exceeding ₹1,25,000 in a financial year. No indexation benefit is available. STCG (holding period under 1 year) is taxed at 20%.
What is the holding period for property to qualify as LTCG? ＋
For immovable property (land, building), the holding period must exceed 2 years to qualify as Long-Term Capital Gain (LTCG). LTCG on property is taxed at 12.5% without indexation benefit (Budget 2024 change). STCG on property is taxed at slab rate.
How is LTCG on gold taxed after Budget 2024? ＋
Gold held for more than 2 years qualifies as LTCG and is taxed at 12.5% (without indexation after Budget 2024). For gold held under 2 years, gains are added to your income and taxed at slab rate.
What is the ₹1.25L LTCG exemption for equity? ＋
Gains from listed equity shares and equity mutual funds up to ₹1,25,000 per financial year are exempt from tax. Only gains above this threshold are taxed at 12.5%. This exemption applies per person, per year.
Is there surcharge on capital gains? ＋
LTCG on equity and equity MF: surcharge capped at 15%. Other LTCG and STCG: normal surcharge rates apply. All capital gains also attract 4% health and education cess on the tax amount.