Now Reading: Budget 2024 rejigs capital gains tax: what stocks, MFs, gold now pay
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Budget 2024 rejigs capital gains tax: what stocks, MFs, gold now pay
Budget 2024 rejigs capital gains tax: what stocks, MFs, gold now pay
The Union Budget 2024 has standardised long-term capital gains (LTCG) tax at 12.5% across most asset classes, while short-term capital gains (STCG) rates vary by investment type. For equity stocks, ETFs and…
The Story in Brief
The Union Budget 2024 has standardised long-term capital gains (LTCG) tax at 12.5% across most asset classes, while short-term capital gains (STCG) rates vary by investment type. For equity stocks, ETFs and mutual funds held over 12 months, LTCG is taxed at 12.5% on gains above the annual exemption threshold, while STCG is taxed at 20%. Gold ETFs, REITs and InvITs also attract 12.5% LTCG if held over 12 months. Debt mutual funds bought before April 2023 are taxed at 12.5% if held over 24 months, while those bought later are taxed at slab rates. Properties purchased after 23 July 2024 attract 12.5% LTCG without indexation if held over 24 months; older properties can choose between 12.5% without indexation and 20% with indexation, paying the lower amount. Foreign equities and international ETFs require a 24-month holding period for 12.5% LTCG treatment.
The Indian Opinion
The Modi government's capital gains tax overhaul is being sold as simplification, but ordinary investors see a more complicated maze than before. The real test lies in whether the new regime boosts long-term holding or merely pushes money into real estate and gold, which now enjoy indexed gains options for older purchases. Will the 12.5% LTCG rate without indexation really encourage equity culture, or will the higher 20% short-term tax on stocks and equity funds discourage churn and dampen market volumes? The next tax filing season will reveal whether compliance has actually become easier or just differently painful.
Source: livemint.com
This story was synthesised by AI from the source linked above.
