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    Capital gains and property

    Anyone selling shares, mutual funds or property, earning rent, or dealing with inherited or NRI-owned property.

    The Finance Act 2024 reshaped capital gains from 23 July 2024. Long-term gains on listed equity and equity mutual funds (Section 112A) are now taxed at 12.5% with a Rs 1.25 lakh annual exemption; short-term equity gains (Section 111A) at 20%; and most other long-term gains (Section 112) at 12.5% without indexation, with a grandfathering option for resident-held immovable property bought before that date. This hub covers the new rates, the cost-inflation-index changes, the rollover exemptions under Sections 54/54F/54EC, house-property income, and the rules for inherited and NRI-owned property.

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    Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact Income Tax Department. Read our editorial scope →

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    Indexation mostly went away

    After FA2024, the long-term rate on most assets is a flat 12.5% without indexation. The main exception is resident-held immovable property acquired before 23 July 2024, where you can choose the old 20%-with-indexation method if it gives a lower tax. For listed equity, the rate is 12.5% over the Rs 1.25 lakh annual exemption.

    Reinvestment can defer the tax

    Sections 54, 54F and 54EC let you defer or save capital-gains tax by reinvesting in a residential house or in specified bonds, within set time limits and (since FA2023) an overall Rs 10 crore cap on the 54/54F house exemption. Planning the reinvestment before you sell is what makes these work.

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