What is the LTCG tax rate in India now?+
For transfers on or after 23 July 2024, long-term capital gains are taxed at a uniform 12.5% without indexation across asset classes (Finance (No. 2) Act 2024). For STT-paid listed equity and equity mutual funds, only aggregate LTCG above ₹1.25 lakh per year is taxed (Sec 112A). Budget 2025 and Budget 2026 made no change to these rates.
How long do I need to hold an asset for it to be long-term?+
Two holding periods only: more than 12 months for listed securities (listed equity shares, equity-oriented mutual funds, listed bonds, REIT/InvIT units), and more than 24 months for everything else — immovable property, unlisted shares, gold, debt fund units. The old 36-month category was abolished from 23 July 2024.
Can I still use indexation on property sale?+
Only via the grandfathering proviso: resident individuals and HUF selling land or building ACQUIRED BEFORE 23 July 2024 pay the lower of 12.5% without indexation and 20% with indexation. Property acquired on or after 23 July 2024, and all sellers other than resident individuals/HUF, get 12.5% without indexation only.
How are debt mutual funds taxed on redemption?+
Units acquired on or after 1 April 2023: always short-term under Sec 50AA — taxed at your slab rate regardless of holding period. Units acquired before 1 April 2023: long-term after 24 months, taxed at 12.5% without indexation; short-term at slab rates. From 1 April 2026, Sec 50AA covers funds investing more than 65% in debt and money-market instruments, so gold ETFs and international funds exit its scope.
What is the STCG rate on shares?+
20% under Sec 111A for STT-paid listed equity shares and equity mutual funds transferred on or after 23 July 2024 (15% before that date). Short-term gains on unlisted shares, property, gold and debt funds are taxed at your normal slab rate.
What is the FMV as on 31 January 2018 grandfathering?+
For STT-paid equity/equity-MF units acquired before 1 February 2018, the Sec 112A cost of acquisition is stepped up to the higher of actual cost and the lower of (FMV on 31 January 2018, sale consideration). It shelters appreciation up to 31-01-2018 from the LTCG charge and survives into the new 12.5% regime.
Can the basic exemption limit or 87A rebate reduce capital gains tax?+
Residents can set any UNEXHAUSTED basic exemption limit (₹4 lakh in the new regime, ₹2.5 lakh old) against LTCG and STCG after absorbing normal income. The Sec 87A rebate, however, is barred against special-rate gains (111A/112/112A) from AY 2026-27 — it applies only to slab-rate income.
Is surcharge payable on capital gains?+
Yes, if your total income crosses surcharge thresholds — but surcharge on Sec 111A, 112 and 112A gains (and dividends) is capped at 15%, even where slab income attracts 25%. Plus 4% health and education cess on tax and surcharge. This calculator shows tax before surcharge because surcharge depends on your total income.
Do these rules change under the Income-tax Act 2025?+
The Income-tax Act 2025 replaces the 1961 Act from tax year 2026-27 with renumbered sections but the same capital gains rates. This page cites the familiar 1961-Act sections (111A/112/112A/50AA); verify the corresponding 2025-Act section numbers with CORAA's Income Tax Act 2025 section mapper before dual-citing in workings.
