Union Budget 2025: How much short and long term capital gains taxes you need pay on your financial assets; know here

Union Budget 2025: Capital gains tax is imposed on anything that is considered a capital. It may be real estate property, or listed securities such as stocks, mutual funds, and bonds.

When you sell them, you have capital gains or losses.

If you have gains, you need to pay tax on that.

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The tax depends on the holding period of the asset.

In terms of equity, short-term capital gains are imposed on assets sold before 12 months and long term capital gains on assets sold after 12 months.

However, the rule is different for the sale of properties. In that, profit from assets sold before 24 months is taxed under short term capital gains, and more than that is taxed under long term capital gains tax.

Short term capital gains tax on listed securities

Short-term capital gains on specified financial assets are taxed at a rate of 20 per cent instead.

The limit was increased from 15 per cent in the previous budget.

Long term capital gains on listed securities

Long term gains on all financial and non-financial assets have a tax rate of 12.5 per cent.

Here, the seller doesn't have to pay any tax on a profit of Rs 1.25 lakh.

This limit was increased from Rs 1 lakh in the previous budget.

Tax on real estate sale

In the July 2023 budget, the tax on other assets was reduced from 20 per cent to 12.5 per cent.

The indexation benefit on the sale of long-term assets had been eliminated.

But the government later gave taxpayers an option to compute taxes on real estate transactions purchased before July 23, 2024, either at 12.5 per cent without indexation or at 20 per cent with indexation.