Capital Gains Tax Rates A.Y.2023-24 & A.Y.2024-25: The following information provides a comprehensive overview of the Capital Gains Tax Rates applicable to different types of assets, the holding periods for these assets, the concept of indexation, and how to calculate both long-term and short-term capital gain tax for the Assessment Years 2023-24 and 2024-25 in India.
Capital gains tax is a levy on the profit realized from the sale of a capital asset like mutual funds, shares, and property. The capital gains tax rates and the classification of the gain as short-term or long-term dependence on the type of asset and the period for which it was held.
Capital Gains Tax Rates A.Y.2023-24/A.Y.2024-25
The following table provides a detailed chart of the Capital Gains Tax Rates applicable to different types of assets for the Assessment Years 2023-24 and 2024-25 in India. Capital gains tax is levied on the profits gained from the sale of capital assets like mutual funds, shares, and property. The capital gains tax rates vary based on the type of asset and whether the gain is short-term or long-term. Short-term capital gains are usually taxed at the individual’s income tax slab rate, while long-term capital gains have specific rates. Please note that these capital gains tax rates are subject to change as per the regulations of the Indian Income Tax Act.
Changes for A.Y.2024-25: The changes in the Capital Gains Tax Rates effective from 1st April 2023 are as follows: For Debt Mutual Funds: The tax on long-term capital gains changes from “10% without indexation or 20% with indexation, whichever is lower” to being taxed as per the individual’s income tax slab rate.
Table of Capital Gains Tax Rates on Different Assets A.Y.2023-24/A.Y.2024-25
| Type of Asset | Tax on Short-term Capital Gain | Tax on Long-term Capital Gain |
| Mutual Funds | ||
| Debt Mutual Fund | As per Income Tax Slab (Check Income Tax Slab AY 2023-24 Here) | On or before 1st April 2023: 10% without indexation or 20% with indexation whichever is lower With Effect From 1st April 2023: As per income tax slab |
| Equity Mutual Funds (STT Paid) | 15% | 10% over and above Rs. 1 Lakh |
| Shares | ||
| Listed Equity Shares (STT Paid) | 15% | 10% over and above Rs. 1 Lakh |
| Unlisted Equity Shares | As per Income Tax Slab | 20% with indexation |
| Property | ||
| Immovable Property (Land, Building, House Property etc.) | As per Income Tax Slab | 20% with indexation |
| Movable Property (Jewelry, Painting, etc.) | As per Income Tax Slab | 20% with indexation |
Holding Period of Different Types of Assets A.Y.2023-24/A.Y.2024-25
The following information outlines the holding periods for different types of assets for the Assessment Years 2023-24 and 2024-25 in India. The holding period of an asset is a crucial factor in determining whether the capital gain from its sale will be classified as short-term or long-term, which in turn affects the applicable tax rate.
For mutual funds, shares, and property, the holding period varies. For instance, the holding period for short-term capital gains on debt-oriented mutual funds is 36 months, while for equity-oriented mutual funds and listed equity shares, it’s 12 months.
For unlisted equity shares, immovable property, and movable property, the short-term capital gains apply if the holding period is 24 months or less for the former two and 36 months or less for the latter.
Please note that the classification of capital gains as short-term or long-term can significantly impact the tax liability, and it’s essential to consider this while planning your investments and tax.
Table of Holding Period of Different Types of Assets A.Y.2023-24/A.Y.2024-25
| Nature of Asset | Holding Period of Short-term Capital Gains | Holding Period of Long-term Capital Gains |
| Mutual Funds | ||
| Debt Oriented Mutual Funds | 36 Months | 36 Months or More |
| Equity-Oriented Mutual Funds | 12 Months | 12 Months or More |
| Shares | ||
| Listed Equity Shares in Recorginzed Stock Exchange | 12 Months | 12 Months or More |
| Unlisted equity shares | 24 Months | 24 Months or More |
| Shares | ||
| Immovable Property (Land, Building, House Property etc.) | 24 Months | 24 Months or More |
| Movable Property (Jewelry, Painting, etc.) | 36 Months | 36 Months or More |
What is Indexation and How to Calculate it
Indexation: Indexation is a process by which the cost of acquisition is adjusted against inflationary rise in the value of an asset. The Central Government has notified a cost inflation index for this purpose. The benefit of indexation is available only to long-term capital assets.
Factors to Consider for Computation of Indexed Cost of Acquisition
1. Year of acquisition/improvement
2. Year of transfer
3. Cost inflation index of the year of acquisition/improvement
4. Cost inflation index of the year of transfer
Formulas: The indexed cost of acquisition and improvement are computed using the following formulas:
Indexed Cost of Acquisition: Cost of acquisition × (Cost inflation index of the year of transfer / Cost inflation index of the year of acquisition)
Indexed Cost of Improvement: Cost of improvement × (Cost inflation index of the year of transfer / Cost inflation index of the year of improvement)
Again, this is not applicable for short-term capital assets.
Cost Inflation Index
The following table presents the Cost Inflation Index (CII) for various financial years from 2001-02 to 2023-24. The Cost Inflation Index is a measure used by the Income Tax Department of India to account for inflation when calculating long-term capital gains on the sale of capital assets.
The CII is a crucial factor in determining the inflation-adjusted cost of acquisition of an asset, which in turn affects the calculation of taxable capital gains. The base year for the CII is 2001-02, and the index for this year is 100.
Please note that the CII for each year is announced by the Central Government, and it’s essential to use the correct index for the year of acquisition and sale when calculating capital gains.
Cost Inflation Index Table (For Latest Updates on CII Table Visit here)
| Sr.No. | Financial Year | Cost Inflation Index |
| 1 | 2001-02 | 100 |
| 2 | 2002-03 | 105 |
| 3 | 2003-04 | 109 |
| 4 | 2004-05 | 113 |
| 5 | 2005-06 | 117 |
| 6 | 2006-07 | 122 |
| 7 | 2007-08 | 129 |
| 8 | 2008-09 | 137 |
| 9 | 2009-10 | 148 |
| 10 | 2010-10 | 167 |
| 11 | 2011-12 | 184 |
| 12 | 2012-13 | 200 |
| 13 | 2013-14 | 220 |
| 14 | 2014-15 | 240 |
| 15 | 2015-16 | 254 |
| 16 | 2016-17 | 264 |
| 17 | 2017-18 | 272 |
| 18 | 2018-19 | 280 |
| 19 | 2019-20 | 289 |
| 20 | 2020-21 | 301 |
| 21 | 2021-22 | 317 |
| 22 | 2022-23 | 331 |
| 23 | 2023-24 | 3481 |
How to Calculate Long-term Capital Gain Tax (Format)
The following information provides a format on how to calculate Long-term Capital Gain Tax. This calculation is crucial for anyone who has sold a capital asset and needs to determine the taxable amount of their long-term capital gains.
The process begins with the full value of consideration, which is the sale price of the asset. From this, any expenditure incurred during the transfer of the capital asset, such as brokerage fees, commission, or advertisement expenses, is subtracted. This gives the net sale consideration.
Next, the indexed cost of acquisition and any indexed cost of improvement is subtracted from the net sale consideration. The result of these calculations is the long-term capital gain, which is the amount subject to tax.
Please note that the indexed cost of acquisition and improvement is calculated using the Cost Inflation Index (CII) to adjust for the effects of inflation during the holding period of the asset. You can check the cost inflation index table above to calculate the indexed cost of acquisition.
| Particulars | Rs. (Amount) |
| Full Value of consideration (i.e. Sales Consideration of Asset) | Rs._____ |
| Less: Expenditure incurred while the transfer of capital asset (i.e. brokerage, commission, advertisement expenses, etc.) | Rs._____ |
| Net sale consideration | Rs._____ |
| Less: Indexed cost of acquisition | Rs._____ |
| Less: indexed cost of improvement if any | Rs._____ |
| Long-term Capital Gains | Rs._____ |
How to Calculate Short-term Capital Gain Tax (Format)
The following information provides a format for calculating Short-term Capital Gain Tax. This is an essential calculation for individuals who have sold a capital asset within a short holding period and need to determine the taxable amount of their short-term capital gains.
The calculation begins with the full value of consideration, which is the sale price of the asset. From this, any expenditure incurred during the transfer of the capital asset, such as brokerage fees, commission, or advertisement expenses, is subtracted. This gives the net sale consideration.
Next, the cost of acquisition (which is the purchase price of the capital asset) and any cost of improvement are subtracted from the net sale consideration. The result of these calculations is the short-term capital gain, which is the amount subject to tax.
Please note that, unlike long-term capital gains, short-term capital gains do not benefit from indexation, which adjusts the cost of acquisition and improvement for inflation. Therefore, the actual costs at the time of acquisition and improvement are used in these calculations.
| Particulars | Rs. (Amount) |
| Full Value of consideration (i.e. Sales Consideration of Asset) | Rs._____ |
| Less: Expenditure incurred while the transfer of capital asset (i.e. brokerage, commission, advertisement expenses, etc.) | Rs._____ |
| Net sale consideration | Rs._____ |
| Less: cost of acquisition (purchase price of the capital asset) | Rs._____ |
| Less: cost of improvement if any | Rs._____ |
| Short-term Capital Gains | Rs._____ |
Example:
Suppose you bought a piece of artwork for Rs. 50,000 and sold it within a year for Rs. 80,000. You also incurred Rs. 2,000 in expenses for advertising and brokerage during the sale. Here’s how you would calculate the short-term capital gain:
| Particulars | Rs. (Amount) |
|---|---|
| Full Value of consideration (i.e., Sales Consideration of Asset) | Rs. 80,000 |
| Less: Expenditure incurred while the transfer of capital asset (i.e., brokerage, commission, advertisement expenses, etc.) | Rs. 2,000 |
| Net sale consideration | Rs. 78,000 |
| Less: cost of acquisition (purchase price of the capital asset) | Rs. 50,000 |
| Short-term Capital Gains | Rs. 28,000 |
So, your short-term capital gain from the sale of the artwork would be Rs. 28,000. This amount would be subject to tax as per the applicable short-term capital gains tax rate.
Calculation of Capital Gain Tax Rate: For short-term capital gains on movable property, such as artwork in the example provided, the tax is typically applied as per the individual’s income tax slab rate. This means that the tax rate will depend on the total taxable income of the individual, including the short-term capital gain.
So, if the short-term capital gain was Rs. 28,000, this amount would be added to your other income for the year, and the tax would be calculated based on the tax slab rate that applies to your total income.
I have sold Agriculture Land in 2018-19. This property was parental property since more than 50 years above. ( Property was in the name of My Grand father than transfer to My father, after death of my father property transfer to my family member i.e. my self, brother and sister). So how I calculate tax liability.
My father bought 25cents of property in the year nov 1985 by paying 20000/-
Later he died and the property transfered to me on june 2013 . Now in 2018 September I had sold 6 cents from that for 18lakhs.
Do I need to pay tax
If so how much I need to pay in this case.
Purchased price 725000/ (seven lakh twenty-five thousand) on June 2013–sold For 13.25 lakhs Febr 2018…
No record on paper of brokerage of one lakh & 1 lakh on construction. what cuold be the tax.
I am retired person., no income EXCEPT Pension. pls
For AY 2018-19, in case of sale of Debt oriented Mutual Fund, whether the option for tax payment on the basis of 20% after Indexation or 10% without indexation which is more advantageous to the Tax Payer is still available or it is compulsory to go for 20% after indexation?
I have purchased a land of 2400 sq ft Oct 1981 for a consideration of Rs 2000/ . I have built house in 1986 and extended in 1998. I was staying in the house for the past 28 years. I have sold the house for consideration of Rs 60 lakhs in Jan 2018. I dont have any records for the expenditure incurred by me for construction and then the extension of the house. Can you help me im computing the capital gain
I am going to sell an ancestral property held for more than 10 years. The purchaser has offered me a price of 54 Lakhs though in the sale deed the Govt valuation of 30 Lakhs is only shown by him. He was insisting upon cash payment but I have refused it outright as it violates the laws. Now If I take the remaining 24 Lakhs in the form of Demand Draft/ cheque, whether I can show and claim the same as Long term Capital Gains to Income Tax. Then I can get exemption by investing in Long Term (54 EC) bonds, otherwise the rest 24 Lakhs how it it will be treated and what will be my income tax implications. Please guide.
Good
I am aged house wife and mother of a daughter and mother in law of my daughter husband.
my self (wife) husband, daughter – group A
my daughter and her husband – group B
group A invested petty amount on the land in 2000 for an amount of say Rs. 2.40 lacs (two lacs forty thousand) and sold in in the year 2015 for Rs. 63 lacs. Immediately booked new appartment for the total cost of Rs.108 lacs and paid all the 63 lacs. in this deal probably daughter in Group b will join as 2 holder by investing 54. lacs
what will be the capital gain as per index slab rate.
when the selling buying transaction to be declared in the tax returns
in case of it is invested in the another property whether capital gain tax exempted. group a husband already having one appartment and group a wife that my self name included in the agreements as joint loop interlink for joint owner ship.
As regards gropu b they have two apartments.. they had sold the third one which was originally cost for Rs. 54.00 lacs and sold amount Rs.100 lacs. Rs 1.00 crore kept in capital account.
Group b like to joint with group A (mother) in fresh investment on new appartment investing 50% of the cost comes to Rs. 54.00 lacs.
what will be the capital gain as per index slab rate.
when the selling buying transaction to be declared in the tax returns
in case of it is invested in the another property whether capital gain tax exempted. group B husband (son in law) already having one appartment and group B wife that my daughter name included in the agreements as joint loop interlink for joint owner ship.
in this group A & B joint purchase of appartment whether that can be allowed under capital gain exemptions.
after the death of group R the entire property will stand in the name of Group B and their children. pls advise
on capital gain index calculations.
when the details of sale/purchase to be declared individual rturns
will the income tax authorities rise any objection.
if tax liability is there what will be there for individually.
is there any case law settled in the higher court similar to above…deals
If the Short term equity gains are less than the taxable income tax slab of 2.5lakhs, can we claim the brokerage fee and other STT expenses paid during the year?
In ase of Capital gains with all other income doesn’t exceed the income tax slab of 2.5lakhs, can we claim the brokerage fee and other expenses inlcuding education cess paid?
Dear Sir,
One of my relative made profit & loss in selling of equity shares through Contract Note and Paid Security Transaction Tax @ the rate of 0.01% as per Contract Note. This includes long term ( more than 12 months ) & short terms also. Request to advice the applicability of tax for the above for filing of IT Returns for AY 2015-16 accordingly.
I incur loss on selling my flat, can i claim tax exemtion for the loss.Pl reply.
I need all rates for VAT CST GST TDS FBT with %.
WHETHER LONG TERMS CAPITAL GAINS ON EQUITY MUTUAL FUNDS REDEEMED AFTER FOUR TO FIVE YEARS ARE REQUIRED TO BE TAXED OR EXEMPT FROM TAX
Is not taxable provided Securities transaction tax is paid.your mutual fund must be listed on some stock exchange. There by u can claim exemption u/s 10(38).