Union Budget 2024-25: Increases Capital Gains tax on Equity mutual funds..!
The central government has proposed revision of capital gains taxes in equity mutual funds and direct shares.
While the central government has proposed an increase in the short term capital gains (STCG) tax on equity mutual funds from 15% to 20%, it proposes raising the long-term capital gains (LTCG) tax on equity funds from 10% to 12.5%.
However, the central government has increased the exemption limit on LTCG from Rs.1 lakh per annum to Rs.1.25 lakh per annum. That means, LTCG is applicable on gains exceeding Rs.1.25 lakh per annum.
Also, in equities, long term will continue to be 12 months and more. However, for non-equity assets like gold and other, the duration of long term has been revised from 36 months to 24 months. Real estate long term capital gain is already 2 years only.
There is no change in debt (Fixed deposit, Debt mutual fund) taxation. It continues to be taxed at a marginal rate of taxation irrespective of holding period.
