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CA Sanjiv Kumar
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Asked: 2025-02-27T11:36:25+05:30 In:

What is the change in capital gain tax as per finance budget 2025?

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What is the change in capital gain tax as per finance budget 2025?
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      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).

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