Archive · 2 Sep 2026
Capital Gains Tax Rules Vary Across Investment Assets
Different investments can have different tax rules when you sell them for a profit.
Stocks, equity mutual funds and ETFs become long-term investments after more than one year.
Their short-term gains are generally taxed at 20%, while long-term gains are taxed at 12.5% above the applicable exemption.
Gold ETFs, REITs, InvITs and listed bonds also use a one-year threshold for long-term treatment.
Some investments, such as physical gold and overseas mutual funds, need to be held for more than two years for long-term treatment.
Debt funds bought from April 1, 2023, onward are generally taxed according to the investor’s tax slab.
Property bought after July 23, 2024, generally faces a 12.5% long-term tax without indexation.
For some properties bought earlier, taxpayers may compare two tax calculations and use the lower liability under the applicable rules.
Equity mutual funds, ETFs and stocks qualify for long-term treatment after more than 12 months.
Short-term gains on these equity investments are taxed at 20%, while long-term gains are taxed at 12.5%, subject to exemptions.
Gold ETFs, REITs, InvITs and listed bonds receive long-term treatment after more than 12 months, but short-term gains generally follow slab rates.
Debt funds bought on or after April 1, 2023, are generally taxed at slab rates regardless of the holding period.
Real-estate taxation depends on the purchase date, with some older properties eligible for a comparison between indexed and non-indexed tax calculations.
- Who
- Investors holding equity, debt, gold, international, real-estate and other market-linked assets.
- What
- The article explains how short-term and long-term capital gains are taxed across different asset classes.
- When
- The rules include purchase-date distinctions for debt funds bought before or on or after April 1, 2023, and property bought before or after July 23, 2024.
- Why
- To show investors how holding periods, purchase dates and asset types affect capital-gains tax liability.
- Equity LTCG holding period
- More than 12 months for equity mutual funds, ETFs and stocks.
- Equity tax rates
- Short-term gains are taxed at 20%; long-term gains are taxed at 12.5%, subject to applicable exemptions.
- Other 12-month assets
- Gold ETFs, REITs, InvITs and listed bonds qualify for long-term treatment after more than 12 months.
- Debt funds purchased before April 1, 2023
- Long-term treatment begins after more than 24 months, with LTCG taxed at 12.5%.
- Debt funds purchased on or after April 1, 2023
- Gains are generally taxed at the applicable slab rate regardless of the holding period.
- Gold and international investments
- Gold mutual funds, physical gold, overseas mutual funds, foreign equity and international ETFs generally require more than 24 months for long-term treatment.
- Real estate
- Property bought after July 23, 2024, is generally taxed at 12.5% on long-term gains without indexation; eligible earlier purchases may allow a comparison with 20% taxation with indexation.