For the financial year 2024-25, capital gains tax in India is structured as follows.
Long-term capital gains above ₹1 lakh are taxed at 10%, while for certain assets like real estate, the rate is 20% with indexation benefits.
Short-term capital gains on assets sold within 36 months are taxed at 15%.
Dividend income is taxed at 20%.
And other capital gains-related income is taxed at 30%.
There’s no general basic exemption limit for capital gains, but if you're claiming exemptions by reinvesting in new assets, there’s a cap of ₹10 crores.
The key tax sections to be aware of are Section 112, which covers LTCG taxation, and Section 111A, which applies to STCG from listed shares and mutual funds.
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