• Holding period has been simplified. There are only two holding periods, for listed securities, it is one year, for all other assets, it is two years.
  • Rate for short-term STT paid listed equity, Equity oriented mutual fund and units of business trust has increased from 15 to 20%. Similarly the rate for these assets for long-term has increased from 10 to 12.5%. However, the exemption limit of 1 lakh for LTCG on these assets has also increased to 1.25 lakh Rs.
  • The rate for other long-term capital gains on all assets has been rationalized to 12.5% without indexation. This rate was earlier 20% with indexation. This will ease in simplifying the taxation of capital gains and their easy computation.
  • The drastic reduction in the rate will benefit all category of assets. In most of the cases, the taxpayers will benefit substantially.
  • There is no change in roll over benefits already available under the IT Act. Therefore, taxpayers who want to save on LTCG tax even with low rates, can continue to avail the roll over benefits on fulfillment of conditions as applicable.
  • These changes have come immediately i.e. apply from 23.7.2024.