LTCG and Grandfathering shares/ MF sold before 23rd july 2024

1. Yes.
2.  Yes, subject to bill becomes Act without any change....

i understand

CASE 1. Grandfathering allowed for LTCG equity / MF equity orianteds sold before 23rd July 2024 and 1,00,000 examption allowed  and balance will be taxed at 20%, 

 CASE 2. if LTCG equity / MF equity orianteds sold  on or after 23rd july 2024 will be taxed 12.5% without Grandfathering.

CASE 3. IS CONFUSING   OLD REGIME AGE ABOVE 60

Income at normal rate 2,30.000

LTCG sold before 23rd July 2024 Grandfathering Purchased 2005 - Rs 50,000

LTCG sold AFTER  23rd July 2024  Purchased 2017 Grandfathering NOT COSIDERED -Rs 1,50,000

LTCG Rs 230,000+Rs 50,000+ Rs 150,000=Rs 430,000- Rs 300,000 NOT CHARGABLE TO TAX - Rs 125,000 EXAMPTION=NET LTCG Rs 5000,  TAX ON Rs 5000 X 12.5% =625  PLUS CESS 4% 25= FINAL TAX Rs 650

CALCULATION SHOULD BE LIKE THIS , IF GRANFATHERING NOT ALLOWED before 23rd July 2024  AND LTCG Rs 50,000 WILL CHANGED TO LTCG Rs 90,000

LTCG Rs 230,000+Rs 90,000+Rs 150,000=Rs 470,000- Rs 300,000 NOT CHARGABLE TO TAX -Rs 125,000 EXAMPTION=NET LTCG Rs 45,000,  TAX ON Rs 45,000 X 12.5% =5,625  PLUS CESS 4% - Rs 225= FINAL TAX Rs 5850

COMENT PLEASE

The Ministry of Finance is currently evaluating several options regarding the newly announced revised Long Term Capital Gains (LTCG) regime, which aims to eliminate indexation benefits for property, gold, and other unlisted assets.

The tweaks to the Finance Bill may be undertaken in the run-up to the passage of the Finance Bill 2024-25 in Parliament.

Sources have told Business Today TV that the proposal is to apply the indexation change prospectively, starting from FY26 instead of the current year, to provide ample time for individuals planning to sell their properties.

The new provisions for the taxation of capital gains came into force on July 23, 2024.

Another proposal under consideration is to offer property sellers a choice between a 20 percent rate with indexation and a 12.5 percent rate without indexation under section 112 of the IT Act.

However, some officials are not in favor of this option as it could complicate the process.

Sources added that while there is no plan to reverse the decision, some adjustments might be made to mitigate the impact, as suggested by industry stakeholders.

For shares and equity mutual funds, grandfathering under the Finance (No. 2) Act 2024 works by date of SALE, not date of purchase:

For SALES made BEFORE July 23, 2024 (in FY 2025-26 if the sale was up to July 22):
- LTCG rate: 10% (old rate)
- Rs.1 lakh annual exemption still applies
- This applies regardless of when the shares/MF units were purchased

For SALES made ON OR AFTER July 23, 2024:
- LTCG rate: 12.5% (new rate)
- Rs.1.25 lakh annual exemption (this was increased from Rs.1 lakh in the same budget)
- STCG rate: 20% (increased from 15%)

In the ITR for AY 2026-27:
- If you had sales both before and after July 23, 2024, they are computed separately at the applicable rate for each batch
- The Rs.1.25 lakh exemption is on the TOTAL LTCG for the year (not per transaction). ITR-2 and ITR-3 have separate computation sections for pre and post July 2024 gains.

If all your equity sales were in FY 2025-26 (after July 23, 2024): you are on the new 12.5% / Rs.1.25 lakh regime only.

This [capital gains tax guide for AY 2026-27](https://taxgarden.in/blog/capital-gains-tax-sale-of-house-property-india-fy-2026-27) covers the rate changes and their ITR reporting requirements.