What is Capital Gain Tax?

In India, capital gains are classified into short-term and long-term capital gains based on the duration for which an asset is held before it is sold.

The classification depends on the nature of the asset, such as real estate, stocks, mutual funds, or other securities. Here’s how they are defined for the financial year 2024:

Short-Term Capital Gains (STCG):

This is applicable to equity-related investments (like stocks and equity mutual funds) held for 12 months or less.

The tax rate for short-term gains has been increased to 20%, up from the previous rate of 15%​.

Long-Term Capital Gains (LTCG):

Gains from equity-related investments held for more than 12 months qualify as long-term.

The tax rate on these gains is now a flat 12.5%, which is an increase from the earlier 10% rate.

Additionally, there is an exemption on long-term capital gains up to ₹1,25,000, but the benefit of indexation (which adjusts the purchase price for inflation) has been removed.

For other assets like real estate, gold, or unlisted shares, the holding period for long-term classification is 24 months, and they follow the same 12.5% LTCG rate without indexation benefits​.

What is Mutual Fund Tax Calculator?

Mutual Fund Tax Calculator is an online mutual fund tax calculator that helps mutual fund investor in calculating short term and long term capital gain tax.