Archive · 4 Aug 2025
India's Capital Gains Tax: Key Rules for Investors
Imagine you sell something like stocks or a house for more than you bought it for.
The profit is taxed as 'capital gains.'
If you held the asset for a short time, it's STCG, taxed at 20% for stocks and your normal tax rate for other things.
If held longer, it's LTCG, taxed at 12.5%.
You can earn up to ₹1.25 lakh from stocks without paying this tax.
Knowing these rules helps you save money and plan your investments wisely.
Capital gains tax applies to profits from selling assets like stocks and property.
Short-term capital gains (STCG) are taxed at 20% for equities, and at individual income tax rates for other assets.
Long-term capital gains (LTCG) are taxed at a flat rate of 12.5% on all assets.
LTCG on equity shares have an exemption limit of ₹ 1.25 lakh.
Understanding these rules helps investors minimize tax liability and plan investments.
- Who
- Investors selling capital assets.
- What
- Capital gains tax rules for stocks, property, and mutual funds.
- When
- For FY 2024-25 (AY 2025-26).
- Where
- In India.
- Why
- To understand tax implications and plan investments.
Taxpayers
Government
Tax Planning
Taxpayers
Aim to minimize tax liability through strategic asset sales.
Government
They may not be aware of these tax laws.
- STCG Tax Rate (Equities)
- 20%
- LTCG Tax Rate
- 12.5%
- LTCG Exemption (Equities)
- Up to ₹ 1.25 lakh
- STCG Holding Period (Equities)
- Less than 12 months
- LTCG Holding Period (Equities)
- More than 12 months
- LTCG Holding Period (Property)
- More than 24 months