Capital Gains Taxation: Before & After Budget 2025 Asset Type Earlier (Before Budget 2025) After Budget 2025 Indexation Allowed? Listed Equity Shares & Equity-Oriented Mutual Funds (Holding > 12 Months) ✅ LTCG up to ₹1 lakh – Tax-free (Section 112A) ✅ LTCG above ₹1 lakh – Taxed at 10% (wiRead more
Capital Gains Taxation: Before & After Budget 2025
| Asset Type | Earlier (Before Budget 2025) | After Budget 2025 | Indexation Allowed? |
| Listed Equity Shares & Equity-Oriented Mutual Funds (Holding > 12 Months) | ✅ LTCG up to ₹1 lakh – Tax-free (Section 112A) ✅ LTCG above ₹1 lakh – Taxed at 10% (without indexation) |
✅ LTCG up to ₹1.25 lakh – Now tax-free ✅ LTCG above ₹1.25 lakh – Now taxed at 12.5% (without indexation) |
❌ No Indexation Allowed |
| Unlisted Shares (Holding > 24 Months) | ✅ LTCG taxed at 20% with indexation (Section 112) ✅ Non-residents taxed at 10% (without indexation) |
✅ No change in tax for residents (still 20% with indexation) ✅ Non-residents now taxed at 12.5% (without indexation) |
✅ Yes, for residents |
| Debt-Oriented Mutual Funds (Holding > 36 Months) | ✅ LTCG taxed at 20% with indexation (before April 1, 2023) 🚨 After April 1, 2023 – No indexation, taxed as per slab rate |
✅ No change – Gains taxed as per income tax slab rate (without indexation) | ❌ No Indexation (since April 1, 2023) |
| Real Estate (Land & Building) (Holding > 24 Months) | ✅ LTCG taxed at 20% with indexation ✅ Exemptions available under Sections 54 & 54F if reinvested in property |
✅ No change – Still 20% with indexation | ✅ Yes |
| Gold & Other Capital Assets (Holding > 36 Months) | ✅ LTCG taxed at 20% with indexation | ✅ No change – Still 20% with indexation | ✅ Yes |
| Cryptocurrency (Virtual Digital Assets – VDAs) | ✅ LTCG taxed at 30% (without indexation or deductions) | ✅ No change – Still taxed at 30% without indexation | ❌ No Indexation Allowed |
🔹 Key Takeaways from Budget 2025
✅ Indexation rules remain unchanged – It is still available for unlisted shares, real estate, and gold, but not for listed shares, debt funds, or cryptocurrencies.
✅ LTCG tax on listed equity shares & mutual funds has increased from 10% to 12.5% (without indexation).
✅ Threshold for tax-free LTCG on listed shares has increased from ₹1 lakh to ₹1.25 lakh.
✅ Non-residents (including FIIs) now pay 12.5% instead of 10% on LTCG from unlisted shares.
✅ No impact on taxation of debt mutual funds (still taxed at slab rate without indexation).
The Income Tax Act prescribes 5 main types of assessments, each with a different purpose and scope: 1️⃣ Self-Assessment – [Section 140A] This is done voluntarily by the taxpayer while filing the income tax return. If tax is payable as per return, it must be paid before filing. ✔ No notice from deparRead more
The Income Tax Act prescribes 5 main types of assessments, each with a different purpose and scope:
1️⃣ Self-Assessment – [Section 140A]
This is done voluntarily by the taxpayer while filing the income tax return.
If tax is payable as per return, it must be paid before filing.
✔ No notice from department required.
2️⃣ Summary Assessment – [Section 143(1)]
Also known as Intimation.
Done by CPC through computerised checks.
Adjustments for arithmetical errors, mismatch in TDS, etc., are made.
✔ No detailed scrutiny involved.
3️⃣ Scrutiny Assessment – [Section 143(3)]
Involves detailed examination of the return and accounts.
Done to verify correctness of income, claims, exemptions, deductions, etc.
✅ A notice under Section 143(2) is mandatory.
Commonly called Regular Assessment.
4️⃣ Best Judgment Assessment – [Section 144]
Used when:
No return is filed,
Return is defective and not rectified,
Compliance is not made with notices.
Officer assesses income based on available material.
5️⃣ Reassessment / Income Escaping Assessment – [Section 147/148]
Done when the Assessing Officer believes some income has escaped assessment.
Notice issued under Section 148.
Time limits and prior approvals apply as per amended provisions post Finance Act, 2021.
𝗧𝘆𝗽𝗲𝘀 𝗼𝗳 𝗔𝗽𝗽𝗲𝗮𝗹𝘀 (With Relevant Sections)
1️⃣ Appeal to CIT(Appeals) – [Section 246A]
First appellate authority.
Can appeal against order of Assessing Officer.
Must file appeal within 30 days of receiving order.
2️⃣ Appeal to Income Tax Appellate Tribunal (ITAT) – [Section 253]
Against orders of CIT(A) or certain orders of AO.
ITAT is the second level appellate authority.
3️⃣ Appeal to High Court – [Section 260A]
On substantial questions of law arising from ITAT orders.
Must be filed within 120 days from date of ITAT order.
4️⃣ Appeal to Supreme Court – [Section 261]
Against High Court judgment, only if case involves important legal principles.
Requires certificate of fitness from High Court.
5️⃣ Revision by CIT (u/s 263/264)
Not an appeal, but a review power:
Section 263 – Revision by CIT if order is erroneous and prejudicial to revenue.
Section 264 – Revision in favor of taxpayer.
🔄 Faceless Assessment and Appeals (Recent Development)
Introduced to bring transparency and efficiency.
Conducted electronically, without physical interface.
Applies to 143(3), 144 assessments and CIT(A) proceedings.
🧾 Summary Table:
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