Detailed Explanation
How it works
Long-term gains on property and unlisted assets are taxed at 12.5% (post Budget 2024), and on listed equity at 12.5% above Rs.1.25 lakh; short-term gains are taxed at slab or 20% (listed equity).
The FY 2026-27 rate map
Post-Finance (No. 2) Act 2024 architecture: listed equity/equity MF (STT-paid) — LTCG above Rs.1.25 lakh at 12.5% (holding > 12 months), STCG at 20%; immovable property — LTCG at 12.5% without indexation (holding > 24 months), with the pre-23 July 2024 acquisitions retaining the option of 20% with indexation for resident individuals/HUF; other assets (unlisted shares, gold, debt) — 24-month holding, 12.5% LTCG; debt mutual funds bought after 1 April 2023 — always slab-rate regardless of holding.
Worked example
Gold bought in 2019 for Rs.8,00,000, sold in FY 2026-27 for Rs.14,00,000: LTCG Rs.6,00,000 × 12.5% = Rs.75,000 plus cess (no indexation under the new regime). The same gain in listed equity would first absorb the Rs.1,25,000 exemption. Asset class, holding period and acquisition date now drive materially different outcomes for the same economic gain.
Planning levers that survive
Reinvestment exemptions (54 — house to house; 54F — any asset to house; 54EC — property gains to NHAI/REC bonds within 6 months, Rs.50 lakh cap), loss harvesting and set-off sequencing, the CGAS deposit before the return due date, and holding-period management around the 12/24-month cliffs. Every computation should be dated against the transaction — grandfathering rules make dates decisive.
Frequently asked questions
What are capital gains?
Profits from transferring a capital asset, classified as short-term or long-term by holding period.
What is the LTCG rate now?
12.5% for most long-term assets following Budget 2024, with a Rs.1.25 lakh exemption for listed equity under 112A.
This content is for general guidance only and does not constitute professional advice. Tax law changes frequently — verify the current position and consult a qualified Chartered Accountant before acting. Last reviewed: June 2026.