CAN YOU PLEASE TELL BUDGET IMPACT ON LTCG REGARDING PROPERTY AND MUTUAL FUNDS
Ans: Tax Rates for Listed Indian Securities
Equity Shares and Securities (excluding MFs):
Long-term Capital Gains (LTCG): 12.50% (holding period > 12 months)
Short-term Capital Gains (STCG): 20%
Offers for Sale (OFS) Equity Shares:
LTCG: 12.50% (holding period > 24 months)
STCG: 20%
Tax Rates for Bonds, Debentures, and Zero-Coupon Bonds (ZCBs)
Excluding Market-Linked Debentures (MLDs):
LTCG: 12.50% (holding period > 12 months)
STCG: Taxed at slab rate
Market-Linked Debentures (MLDs):
LTCG and STCG: Both taxed at slab rate, irrespective of holding period
Tax Rates for Real Estate and Other Assets
Real Estate:
LTCG: 12.50% (holding period > 24 months)
STCG: Taxed at slab rate
Other Assets (Gold, Art, Silver, Foreign Assets, etc.):
LTCG: 12.50% (holding period > 24 months)
STCG: Taxed at slab rate
Tax Rates for Mutual Funds
Equity-Oriented Mutual Funds (>= 65% Indian Equity):
LTCG: 12.50% (holding period > 12 months)
STCG: 20%
Specified and Debt-Oriented Mutual Funds:
Acquired before April 1, 2023:
Sold between April 1, 2024, and July 22, 2024:
LTCG: 20% (holding period > 36 months)
STCG: Taxed at slab rate
Sold on or after July 23, 2024:
LTCG: 12.50% (holding period > 24 months)
STCG: Taxed at slab rate
Acquired post April 1, 2023:
LTCG and STCG: Both taxed at slab rate, irrespective of holding period
Hybrid Mutual Funds (>35% and 36 months)
STCG: Taxed at slab rate
Sold on or after July 23, 2024:
LTCG: 12.50% (holding period > 24 months)
STCG: Taxed at slab rate
Additional Notes
The above rates exclude surcharge and cess, which remain unchanged.
No indexation benefits are available except in specific situations.
For transfers of capital assets between April 1, 2024, and July 22, 2024, old tax rates apply.
The capital gains exemption for listed equity shares and equity-oriented mutual funds under section 112A has increased from Rs. 100,000 to Rs. 125,000.
It is advised to consult tax professionals for any tax related decision.
Best Regards,
K. Ramalingam, MBA, CFP
Chief Financial Planner,
www.holisticinvestment.in
