3 weeks ago
Stocks, ETFs and mutual funds: new capital gains tax rates
When people sell investments for a profit, the government takes a share of that profit, called a capital gains tax.
India's Union Budget 2024 changed many of these tax rules to make them more similar across different investments.
For most long-term investments, like shares or mutual funds held for more than a year, the profit is taxed at 12.5%.
But the rules depend on what you invested in and how long you held it.
Stocks, exchange-traded funds and equity mutual funds are considered long-term after just 12 months and pay 20% tax on short-term profits.
Some investments, like gold, overseas mutual funds and fund-of-funds, need to be held for more than 24 months to get the lower long-term rate.
Debt mutual funds bought after April 2023 are taxed at your regular income tax rate, which may be higher.
Real estate bought after July 2024 gets the new 12.5% long-term rate after 24 months.
For older properties, taxpayers can choose whichever tax calculation is lower.
So investors must check the asset, purchase date and holding period before selling.
Union Budget 2024 introduced a more uniform capital gains tax regime, with long-term capital gains (LTCG) generally taxed at 12.5%.
Stocks, ETFs and equity mutual funds qualify for LTCG treatment after a holding period of more than 12 months, with STCG taxed at 20%.
Gold ETFs, REITs and InvITs also qualify for LTCG after more than 12 months, with long-term gains taxed at 12.5%.
Debt mutual funds bought on or after 1 April 2023 are taxed at the investor's slab rate, while older investments get 12.5% LTCG after 24 months.
Real estate bought after 23 July 2024 attracts 12.5% LTCG after 24 months, while older properties can compare 12.5% without indexation with 20% with indexation.
- Who
- Investors in stocks, equity mutual funds, ETFs, gold, debt mutual funds, real estate and other assets in India
- What
- The new capital gains tax rules introduced after the Union Budget 2024 for various asset classes
- Where
- India
- When
- After the Union Budget 2024, with key cut-off dates of 1 April 2023 and 23 July 2024
- Why
- The Budget brought a more uniform tax structure for several asset classes, with LTCG generally at 12.5%
Key facts
- Standard LTCG rate
- 12.5%
- Equity STCG rate (stocks, ETFs, equity mutual funds)
- 20%
- LTCG holding period for stocks, ETFs, equity mutual funds
- More than 12 months
- Debt mutual fund cutoff date
- 1 April 2023
- Debt mutual funds bought on/after 1 April 2023
- Taxed at investor's slab rate
- Real estate purchase cutoff date
- 23 July 2024
- Real estate LTCG rate after 23 July 2024
- 12.5% after 24 months
- LTCG holding period for gold, overseas funds, international ETFs
- More than 24 months










