—Guide
Capital Gains Tax in India After the 2024 Changes: Shares, Mutual Funds and Property
How capital gains are taxed after the July 2024 changes: new rates and holding periods for shares, mutual funds and property, and the indexation choice.
The 2024 Budget changed capital gains tax significantly, for transfers from 23 July 2024. Rates, holding periods and indexation all moved. This guide sets out how gains are taxed now for resident individuals.
Note: this article describes the rules under the Income-tax Act, 1961. The Income-tax Act, 2025 applies from 1 April 2026 (tax year 2026-27), with renumbered provisions, so check the current position for later periods.
Holding Periods
- Listed securities, including listed shares and equity mutual fund units: long-term if held for more than 12 months.
- All other assets, including property, unlisted shares and gold: long-term if held for more than 24 months.
Listed Shares and Equity Mutual Funds
- Short-term gains: 20%.
- Long-term gains: 12.5% on gains above ₹1.25 lakh a year.
For shares and units acquired before 1 February 2018, the cost can be stepped up to the fair market value on 31 January 2018, under the grandfathering rule.
Property
- Short-term gains: taxed at slab rates.
- Long-term gains: 12.5% without indexation.
- For land or buildings acquired before 23 July 2024, resident individuals and HUFs can choose to compute the gain with indexation and pay 20%, if that gives lower tax.
If the stamp duty value is higher than the sale price, beyond a tolerance, the stamp duty value may be treated as the sale price.
Unlisted Shares and Other Assets
Long-term gains are taxed at 12.5% without indexation; short-term gains at slab rates.
Debt Mutual Funds
Units of specified mutual funds acquired on or after 1 April 2023 — broadly, those investing mainly in debt — are taxed at slab rates regardless of holding period.
Exemptions
- Reinvesting long-term gains from a residential house in another residential house, subject to a cap.
- Investing long-term gains from land or buildings in specified bonds, up to a limit, within six months.
- Reinvesting net consideration from other long-term assets in a residential house, subject to conditions.
Getting Help
Think Filing computes capital gains, compares the options for older property, and plans exemptions before you sell.