# Capital Gains Tax after Budget 2024 \u2014 New LTCG & STCG Rates (With Examples)<\/p>\n
## Introduction<\/p>\n
Union Budget 2024 brought **major changes in capital gains taxation** in India. The government simplified tax rates, removed indexation benefits in most cases, and increased rates for equity transactions. These changes are applicable **from 23 July 2024 onwards** and impact investors in shares, mutual funds, real estate, gold, etc.<\/p>\n
In this blog, we will understand **new LTCG & STCG rates**, key changes, and **practical examples**.<\/p>\n
—<\/p>\n
## 1. What is Capital Gain?<\/p>\n
Capital gain arises when you sell a **capital asset** (like shares, property, gold, mutual funds) at a price higher than its purchase cost.<\/p>\n
* **Short-Term Capital Gain (STCG)** \u2192 Asset held for short period
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* **Long-Term Capital Gain (LTCG)** \u2192 Asset held for longer period<\/p>\n
—<\/p>\n
## 2. Major Changes in Budget 2024<\/p>\n
### \u2714 Key Highlights<\/p>\n
* LTCG tax rate changed to **12.5% (uniform)**
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* STCG on equity increased to **20%**
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* **Indexation benefit removed** in most cases
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* LTCG exemption on equity increased to **\u20b91.25 lakh**
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* Simplified taxation across asset classes<\/p>\n
—<\/p>\n
## 3. New LTCG Tax Rates (After Budget 2024)<\/p>\n
| Asset Type | New LTCG Rate |
\n
| —————————– | ——————————————– |
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| Equity Shares \/ Equity MF | 12.5% (above \u20b91.25 lakh) |
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| Property \/ Gold \/ Others | 12.5% (without indexation) |
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| Property (old purchase cases) | Option: 20% with indexation OR 12.5% without |<\/p>\n
\ud83d\udc49 Earlier: 10% (equity) or 20% (others with indexation)
\n
\ud83d\udc49 Now: **Flat 12.5%** (simplified system)<\/p>\n
—<\/p>\n
## 4. New STCG Tax Rates<\/p>\n
| Asset Type | New STCG Rate |
\n
| ———————————- | ———————- |
\n
| Equity Shares \/ Equity MF | 20% |
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| Other Assets (property, gold etc.) | As per income tax slab |<\/p>\n
\ud83d\udc49 Earlier equity STCG was **15%**, now increased to **20%**<\/p>\n
—<\/p>\n
## 5. Important Rule (Date-Based)<\/p>\n
* **Before 23 July 2024 \u2192 Old rates apply**
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* **After 23 July 2024 \u2192 New rates apply**<\/p>\n
This means taxpayers may need to **split capital gains in ITR**.<\/p>\n
—<\/p>\n
## 6. Examples for Better Understanding<\/p>\n
### \ud83d\udd39 Example 1: LTCG on Shares<\/p>\n
* Purchase Price = \u20b92,00,000
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* Sale Price = \u20b94,00,000
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* Gain = \u20b92,00,000<\/p>\n
Exemption = \u20b91,25,000
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Taxable Gain = \u20b975,000<\/p>\n
Tax = 12.5% of \u20b975,000 = **\u20b99,375**<\/p>\n
—<\/p>\n
### \ud83d\udd39 Example 2: STCG on Shares<\/p>\n
* Purchase Price = \u20b91,00,000
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* Sale Price = \u20b91,50,000
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* Gain = \u20b950,000<\/p>\n
Tax = 20% of \u20b950,000 = **\u20b910,000**<\/p>\n
—<\/p>\n
### \ud83d\udd39 Example 3: Property Sale (LTCG)<\/p>\n
* Purchase Price = \u20b920,00,000
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* Sale Price = \u20b930,00,000
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* Gain = \u20b910,00,000<\/p>\n
\ud83d\udc49 Option 1: 12.5% without indexation
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Tax = \u20b91,25,000<\/p>\n
\ud83d\udc49 Option 2 (if eligible): 20% with indexation
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(Depends on inflation-adjusted cost)<\/p>\n
—<\/p>\n
## 7. Impact of Budget 2024 Changes<\/p>\n
### \u2714 Positive<\/p>\n
* Simpler tax structure
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* Higher exemption (\u20b91.25 lakh)
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* Uniform rates across assets<\/p>\n
### \u274c Negative<\/p>\n
* Removal of indexation increases tax burden
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* Higher STCG discourages short-term trading
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* Real estate investors may pay more tax<\/p>\n
—<\/p>\n
## 8. Conclusion<\/p>\n
Budget 2024 has **reshaped capital gains taxation in India** by introducing a **simplified but slightly higher tax regime**.<\/p>\n
* **LTCG \u2192 12.5% (flat)**
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* **STCG \u2192 20% (equity)**
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* **Indexation mostly removed**<\/p>\n
Investors should now focus more on **long-term investing and tax planning** to reduce tax liability.<\/p>\n","protected":false},"excerpt":{"rendered":"
# Capital Gains Tax after Budget 2024 \u2014 New LTCG & STCG Rates (With Examples) ## Introduction Union Budget 2024 brought **major changes in capital gains taxation** in India. The government simplified tax rates, removed indexation benefits in most cases, and increased rates for equity transactions. These changes are applicable **from 23 July 2024 onwards**…<\/p>\n","protected":false},"author":21,"featured_media":0,"comment_status":"closed","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[5],"tags":[770],"class_list":["post-1613","post","type-post","status-publish","format-standard","hentry","category-income-tax","tag-capital-gains-tax-2024"],"_links":{"self":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/1613","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/users\/21"}],"replies":[{"embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/comments?post=1613"}],"version-history":[{"count":1,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/1613\/revisions"}],"predecessor-version":[{"id":1632,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/posts\/1613\/revisions\/1632"}],"wp:attachment":[{"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/media?parent=1613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/categories?post=1613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.taxaj.com/learn\/wp-json\/wp\/v2\/tags?post=1613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}