look news india
UNION BUDGET 2024: Finance Minister Nirmala Sitharaman has made a big announcement on rationalizing and simplifying capital gains in Budget 2024 (Union Budget 2024). The new changes have come into effect from today (July 23). However, there will be no impact on today's trading. The rate of short term capital gain (STCG) will be 20 percent. LTCG rate on some financial products will be 12.5 percent. Capital gains will be imposed on unlisted bonds and debentures.
The Finance Minister announced in the budget speech that the STCG tax on some financial assets has been increased to 20 percent. Currently it is 15 percent. 15 percent short-term capital gains tax has been retained on other financial assets. Two major changes have been made regarding long term capital gains (LTCG). First of all, the limit of LTCG exemption has been increased from Rs 1 lakh to Rs 1.25 lakh. The tax rate has been increased from 10 percent to 12.5 percent. This rule will apply to all financial and non-financial assets.
Change in holding period-
If the holding period for listed financial assets is more than 12 months, it will fall under LTCG. While for unlisted and non-financial assets the LTCG period has been increased to 2 years. Capital gains on unlisted bonds, debentures, debt mutual funds and market-linked debentures will be taxed as per the investor's income tax slab.