{"id":175,"date":"2025-01-21T06:13:05","date_gmt":"2025-01-21T06:13:05","guid":{"rendered":"https:\/\/mytaxadvisorindia.in\/?p=175"},"modified":"2025-01-21T06:13:05","modified_gmt":"2025-01-21T06:13:05","slug":"capital-gain-tax-py-2024-25-ay-2025-26","status":"publish","type":"post","link":"https:\/\/www.mytaxadvisorindia.com\/blog\/capital-gain-tax-py-2024-25-ay-2025-26\/","title":{"rendered":"Determination of Capital Gain Tax PY 2024-25 (AY 2025-26)"},"content":{"rendered":"\n

In simple words, a capital gain<\/strong> occurs when a person sells an asset for more than what person paid to purchase it. Almost any type of asset a person owns is a capital asset.<\/p>\n\n\n\n

In law term, as per section 45 of Income Tax Act, 1961 provides that any profits or gains arising from the transfer of a capital asset effected in the previous year will be chargeable to income-tax under the head ‘Capital Gains’. Such capital gains will be deemed to be the income of the previous year in which the transfer took place.<\/p>\n\n\n\n

Short-term capital gains<\/strong>: If a person sells an asset within one\/two\/three years of purchasing it, the profit a person makes is considered a short-term capital gain. <\/p>\n\n\n\n

Long-term capital gains<\/strong>: If a person holds the asset for more than one\/two\/three years before selling it, the profit is considered a long-term capital gain. <\/p>\n\n\n\n

Holding Period of Assets<\/strong><\/p>\n\n\n\n

Type of Assets<\/strong><\/td>Short Term<\/strong><\/td>Long Term<\/strong><\/td><\/tr>
\"unchecked\"Listed Securities (Equity, Preference Debentures Government Securities)
\"unchecked\"UTI Fund
\"unchecked\"Equity oriented MutualFund
\"unchecked\"Zero Coupon Bond<\/td>		If Holding period is upto 12 months<\/td>If Holding period is more than 12 months<\/td><\/tr>
\"unchecked\"Unlisted equity & Preference Shares
\"unchecked\"Land & Building<\/td>		If Holding period is upto 24 months<\/td>If Holding period is more than 24 months<\/td><\/tr>
\"unchecked\"Other Assets<\/td>If Holding period is upto 36* months<\/td>If Holding period is more than 36* months<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

*w.e.f.<\/strong> 23.07.2024, Holding Period of 36 months is reduced to 24 months.<\/p>\n\n\n\n

Cost Inflation Index (CII) for FY 2024-25 is 363.<\/strong><\/p>\n\n\n\n\n\n

Tax rate on capital gains:<\/strong><\/p>\n\n\n\n

Income<\/strong><\/td>Rate of Tax (Before 23.07.2024)<\/strong><\/td>Rate of Tax (On or After 23.07.2024)<\/strong><\/td><\/tr>
Long term capital gains (other than LTCG taxable as per section 112A 
– Transfer of any land or building or both by an individual or a HUF, being a resident
– Transfer of other capital asset<\/td>

20% <\/strong>with indexation

20% <\/strong>with indexation<\/td>
Lower of 12.5%<\/strong> without indexation or 20% <\/strong>with indexation 

12.5% without indexation.<\/td><\/tr>
Long-term capital gains arising from transfer of unlisted securities or shares of company in which public are not substantially interested by non-resident Assessee. <\/td>
10%<\/strong> withoutindexation andforeign currencyfluctuations<\/td>
12.5%<\/strong> withoutindexation andforeign currencyfluctuations<\/td><\/tr>
Long term capital gains on transfer of-Equity share in a companyUnit of an equity oriented fundUnit of business trustCondition for availing the benefit of this concessional rate is that securities transaction tax (STT) should have been paid-Note: Equity shares – Both at the time of acquisition and transfer.Unit of equity oriented funds or unit of business trust – At the time of transfer<\/td>



10% <\/strong>on LTCG > INR1.25 lakhs if transfertakes place <\/td>



12.5%<\/strong> on LTCG > INR1.25 lakhs if transfertakes place<\/td><\/tr>
Short-term capital gains** on transfer of-Equity shares in a companyUnit of an equity oriented fundUnit of business trustThe conditions for availing the benefit of this concessional rate are such transactions should be chargeable STT.<\/td>

15% <\/strong>if transfertakes place<\/td>

20% <\/strong>if transfertakes place<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

**Note: Short Term Capital gain for other than STT cases shall be chargeable at normal rate.<\/p>\n","protected":false},"excerpt":{"rendered":"

In simple words, a capital gain occurs when a person sells an asset for more than what person paid to purchase it. Almost any type of asset a person owns is a capital asset. In law term, as per section 45 of Income Tax Act, 1961 provides that any profits or gains arising from the […]<\/p>\n","protected":false},"author":2,"featured_media":176,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,6],"tags":[31,32,33,79,80,81,105,106,107,116,117,118],"class_list":["post-175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax","category-latest-news","tag-capital-gain","tag-capital-gain-for-ay-2024-2025","tag-capital-gain-from-01-04-2024","tag-long-term","tag-long-term-capital-gain","tag-long-term-capital-gain-for-ay-2024-25","tag-rate-of-capital-gain","tag-rate-of-long-term-capital-gain","tag-rate-of-short-term-capital-gain","tag-short-term","tag-short-term-capita-gain","tag-short-term-capital-gain-for-ay-2024-25"],"_links":{"self":[{"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/posts\/175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/comments?post=175"}],"version-history":[{"count":0,"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/posts\/175\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/media\/176"}],"wp:attachment":[{"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/media?parent=175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/categories?post=175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mytaxadvisorindia.com\/blog\/wp-json\/wp\/v2\/tags?post=175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}