Budget 2024-25 has reduced the holding period for determining Long-Term Capital Gains (LTCG) and Short-Term Capital Gains (STCG) on Debt Mutual Funds from 36 months to 24 months. For transfers made before 23rd July 2024, the new 24-month rule will apply. Tax rates for STCG/LTCG have also been revised, with the old rates not applicable to transfers made after the effective date.
30 September 2024
The period of holding to determine LTCG/ STCG is reduced to 24 months from 36 months in respect of Debt MF. In case of transfer made before 23 july 2024, what will be the period determining STCG/LTCG - 24 months or 36 months? The tax rates have also been changed for STCG/ LTCG . Will old rates apply to transfers effected prior to 23 july?