Capital Gains Tax Rates AY 2024-25

Capital Gains Tax Rates A.Y.2024-25: The below mentioned table gives detailed chart about different types of assets under Capital Gains Tax Rates for assessment Year 2024-25 in India. Capital gain is an income tax levied on the sale of assets such as real estate properties (house), financial investments made through banks like fixed deposits (FDs) or recurring deposits (RDs), insurance policies including endowment assurance plans etc. The rate at which this tax has to be paid depends on two things -type of asset being sold ,period for which it was held. There are two types of capital gain i.e.short term & long term. For instance if you acquired shares one month ago and sold them today then that would count under short term capital gain but if you bought land 10 years before selling then that falls into long term capital gains category.

Changes for A.Y.2024-25: The following are the changes in the Capital Gains Tax Rates applicable from 1st April 2023: Debt Mutual Funds – Under current provisions LTCG is chargeable at the rate of 10% without indexation or at a concessional rate of 20% with indexation whichever is lower but this has been changed to be taxed as per slabs rates of individual’s income tax.

Table of Capital Gains Tax Rates on Different Assets 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 2024-25 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

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.

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.

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.

14 thoughts on “Capital Gains Tax Rates AY 2024-25”

  1. 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.

    Reply
  2. 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.

    Reply
  3. 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

    Reply
  4. 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?

    Reply
  5. 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

    Reply
  6. 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.

    Reply
  7. 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

    Reply
  8. 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?

    Reply
  9. 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.

    Reply
  10. WHETHER LONG TERMS CAPITAL GAINS ON EQUITY MUTUAL FUNDS REDEEMED AFTER FOUR TO FIVE YEARS ARE REQUIRED TO BE TAXED OR EXEMPT FROM TAX

    Reply
    • 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).

      Reply

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