Capital gains tax rates updated from July 23, 2024. Learn the new LTCG and STCG tax rates on equities, mutual funds, and foreign bonds.
Anisha Kumari | May 12, 2025 |
ITR Filing FY 24-25: New Capital Gains Tax Rates Chart as revised by Income Tax
The New Capital Gains Tax Rates Commence on July 23, 2024
The Income Tax Department has come out with a new capital gains tax table, introducing significant changes in the taxation of short-term (STCG) and long-term (LTCG) gains. The change is significant as it affects those under both the old and new tax regimes. These capital gains fall under the special rate incomes category and are taxed not under regular income slabs.
The new table offers differential tax rates considering the nature of asset, holding period, and category of assessee. It lays down some details of equities, mutual fund units, and foreign currency bonds in a bid to offer clear understanding to the taxpayers and enable accurate calculation of tax while submitting the Income tax return (ITR) for FY 2024-25.
Capital Gains Tax Table (As Revised by the Income Tax Department)
| Particulars | Section 111A (Short-term capital gains STCG) | Section 112A (Long-term capital gains LTCG) | Section 115A (Royalty and technical service fee) | Section 115AC (Income from bonds or Global Depository Receipts purchased in foreign currency) |
|---|---|---|---|---|
| Eligible Assessee | Any taxpayer | Any taxpayer | Non-Resident (NRI) and Foreign Company taxpayer | Non-Resident (NRIs) |
| Securities covered | Equity shares – Units of equity-oriented mutual fund – Units of business trust | Equity shares – Units of equity-oriented mutual fund – Units of business trust | – | Foreign Currency Convertible Bonds (FCCBs) – Foreign Currency Exchangeable Bonds (FCEB) – Global Depository Receipts (GDRs) of an Indian company or Public Sector Undertaking (PSU) |
| Tax Rate on income from covered securities | – | 10% to 20% on dividend income, as the case may be – 4% to 20% on Interest Income, as the case may be – 20% on Royalty – 20% on Fees for Technical Services | 10% on Interest Income | 10% on Dividend Income |
| Tax rate on long-term capital gains (LTCG) | – | 10% (if the asset is transferred before July 23, 2024) – 12.5% (if the asset is transferred on or after July 23, 2024) Note: The tax shall be calculated on capital gains exceeding Rs. 1.25 lakh. | 10% (if the asset is transferred before July 23, 2024) – 12.5% (if the asset is transferred on or after July 23, 2024) | – |
| Tax rate on short-term capital gains (STCG) | 15% (if the asset is transferred before 23-07-2024) – 20% (if the asset is transferred on or after 23-07-2024) | – | – | – |
| Adjustment of basic exemption limit | Available to residents | Available to residents | No | No |
| Admissibility of deduction under Chapter VI-A | No | No | No, except under Section 80LA to a unit in IFSC and from royalty, and fees for technical services | No |
According to the amended provisions, equity shares and units of equity-oriented mutual funds transferred through recognized stock exchanges will have different tax implications depending on the date of transfer. For transfers up to July 23, 2024, the long-term capital gains (LTCG) will be subject to taxation at 10%, while short-term capital gains (STCG) will be taxed at 15%. However, if the transfer is made on or after July 23, 2024, the rates increase, with LTCG taxed at 12.5% and STCG at 20%.
In case of Long Term Capital Gain under Section 112A, an exemption of Rs. 1.25 lakh will be available.
It is also highlighted that Chapter VI-A deductions like Section 80C (PPF contribution, life insurance premium, housing loan principal repayment) and Section 80D (medical insurance premium) will not be permitted against such capital gains, even under the previous tax regime.
But resident individuals and Hindu Undivided Families (HUFs) with no other income save capital gains can still benefit from the minimum exemption limit of Rs. 3 lakh under the new plan and Rs. 2.5 lakh under the Old Tax Regime. Capital gains beyond this threshold only would attract the newly notified special rates.
The new taxation system also discloses foreign investment. Income arising on Foreign Currency Convertible Bonds (FCCBs), Foreign Currency Exchangeable Bonds (FCEBs), and Global Depository Receipts (GDRs) will continue to attract a 10% tax on interest and dividend income. LTCG arising out of these securities will be levied at 10% in case of disposal prior to July 23, 2024, and 12.5% in case of disposal on or after such date.
This new model by the Income Tax Department seeks to simplify compliance by providing a clearly defined, step-by-step approach to computing tax on various capital assets and informing taxpayers of the changes that take effect in mid-2024.
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