Budget 2024 hikes LTCG tax rate to 12.5%, STCG to 20%, STT on F&O also up
Long-term capital tax in Union Budget 2024-25: Finance Minister Nirmala Sitharaman, on Tuesday, July 23, 2024, increased long-term capital gains (LTCG) tax under Union Budget 2024-25. The LTCG tax rate was hiked to 12.5 per cent from 10 per cent on all financial and non-financial assets.
Sitharaman also hiked short-term capital gains (STCG) tax on "certain" financial securities to 20 per cent from 15 per cent.
"Listed financial assets held for more than a year will be classified as long-term, while unlisted financial assets, held for more than two years, will be classified as long-term asset," Sitharaman said in the Parliament on July 23.
That said, Sitharaman said the limit of long-term cap tax gains exemption will be hiked to Rs 1.25 lakh from Rs 1 lakh in certain cases.
Earlier, long term capital gains (LTCG) tax on the sale of these asset classes stocks, mutual funds, real estate etc. was levied when the holding period of the asset is over one year, whereas short-term capital gains (STCG) was levied when the sale of stocks, mutual funds, real estate etc. is made within one year from the date of purchase.
