Capital Gains Tax in India
Capital gains tax is levied on profits from selling capital assets like stocks, mutual funds, and property. Tax rates depend on holding period and asset type.
Tax Rates by Asset Type (FY 2024-25)
| Asset | STCG (Short-term) | LTCG (Long-term) |
|---|---|---|
| Equity Shares/Equity MF | 15% (if <12 months) | 10% above ₹1L |
| Debt Funds | Slab rate | Slab rate (no indexation) |
| Property | Slab rate (if <24 months) | 20% with indexation |
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Tax Saving Tip
For equity, harvest losses to offset gains. For property, reinvest in another property (Sec 54) or bonds (Sec 54EC) to save LTCG tax.
How to Reduce Capital Gains Tax
- Hold Long-term: LTCG rates are lower than STCG
- Tax-loss Harvesting: Offset gains with losses
- Utilize ₹1L Exemption: For equity LTCG annually
- Reinvest in Property: Section 54 exemption
- Buy 54EC Bonds: Up to ₹50L to save property LTCG