Capital Gains Tax After the 23 July 2024 Reset — What This Calculator Handles
The rules changed mid-stride on 23 July 2024, and most online guidance still mixes the old and new regimes. The current position: long-term capital gains on virtually all assets are taxed at a flat 12.5% without indexation, short-term gains on listed equity at 20%, and the annual LTCG exemption on equity stands at ₹1.25 lakh. Holding-period tests have been compressed to just two — 12 months for listed securities, 24 months for everything else.
This calculator classifies your gain automatically from the purchase and sale dates you enter: listed shares and equity funds turn long-term after 12 months; property, unlisted shares and gold after 24 months. Debt mutual funds bought on or after 1 April 2023 are the exception — they are taxed at your slab rate however long you hold them, a trap for investors who still assume the old three-year indexation rule applies.
Property sellers have one more decision the headline rate hides: for land or buildings acquired before 23 July 2024, resident individuals and HUFs may pay either 12.5% without indexation or 20% with indexation, whichever is lower. Long-held property with modest appreciation often does better under the old method — worth computing both ways before the sale deed is signed, not after.
The calculator gives you the tax estimate; reducing it is where advice earns its fee. Sections 54, 54F and 54EC let you shelter property gains by reinvesting in a residential house or capital gains bonds within set windows, and timing a sale across two financial years can double up the ₹1.25 lakh equity exemption. These are routine moves in the property and NRI transactions PGA & Co. advises on — run your numbers here, then sense-check the plan with us.
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Frequently Asked Questions
What changed for capital gains in the July 2024 reset?
Three things: LTCG on nearly all assets moved to a single 12.5% rate without indexation, STCG on listed equity rose from 15% to 20%, and the equity LTCG exemption increased from ₹1 lakh to ₹1.25 lakh per year. Holding periods were also simplified to 12 months for listed securities and 24 months for all other assets, replacing the old 36-month tests.
How are debt mutual funds taxed now?
Units acquired on or after 1 April 2023 are taxed at your income slab rate regardless of holding period — no LTCG rate, no indexation. Units bought before that date retain long-term treatment after 24 months at 12.5% without indexation. This makes post-2023 debt funds tax-equivalent to fixed deposits, with the modest advantage that tax falls due only on redemption.
Can I still use indexation on a property sale?
Only in one situation: the property was acquired before 23 July 2024 and the seller is a resident individual or HUF. You then pay the lower of 12.5% without indexation or 20% with indexation. Properties bought on or after that date, and sales by companies, firms or non-residents, are locked to 12.5% without indexation.
How can I legally reduce tax on a property sale?
Section 54 exempts gains from selling a residential house if you buy another within two years (or construct within three); Section 54F gives a similar shelter when selling any other long-term asset and reinvesting the proceeds in a house; Section 54EC allows up to ₹50 lakh in NHAI/REC capital gains bonds within six months. Each has lock-ins and conditions, so the right route depends on your cash needs and timeline.
Do NRIs pay capital gains tax differently?
The rates are the same, but the mechanics differ: the buyer must deduct TDS on the sale consideration of property (not just the gain), the indexation option on pre-July-2024 property is unavailable to non-residents, and treaty relief may apply to securities gains depending on the DTAA. NRIs can claim refunds of excess TDS through their return, or apply in advance for a lower-deduction certificate.