Updated LTCG and STCG capital gains tax table by income tax department: Check the tax rates for equities, foreign currency bonds and more

Economic Times

11-05-2025

The Income Tax Department has updated capital gains tax rates, differentiating between long-term (LTCG) and short-term (STCG) gains across asset classes. Effective July 23, 2024, LTCG on certain securities will be taxed at 12.5%, and STCG at 20%. Taxpayers should note that standard deductions under sections like 80C and 80D are not applicable against capital gains.
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Capital gains (LTCG & STCG) income tax rate on equities, others
Particulars
Section 111A (Short term capital gains STCG)
Section 112A (Long term capital gains LTCG)
Section 115A (royalty and technical service fees)
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 23-07-2024);
12.5% (if the asset is transferred on or after 23-07-2024)
Note: The tax shall be calculated on capital gains exceeding Rs. 1.25 lakh.
-
10% (if the asset is transferred before 23-07-2024);
12.5% (if the asset is transferred on or after 23-07-2024)
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 resident individuals and resident HUF only
Available to resident individuals and resident HUF only
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
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The Income Tax Department has recently updated the capital gains taxation table and this is important information since the rate of capital gains tax both long term (LTCG) and short term (STCG) is different for different asset classes. Do note this tax rate is applicable for individuals under both new and old tax regime, as these are all special rate incomes.'Determination of Tax in certain special cases: Since all the incomes are not taxable at the same rate. The document provides a list of Capital Gains/Incomes arising out of certain securities eligible for special tax rates. It contains details with respect to the eligible assessee, security, or tax rates etc.,' said the Income Tax Department.Here's the table released by the Income Tax Department:Source: Income Tax Department WebsiteMihir Tanna, associate director, S.K Patodia LLP says: 'Indian Income Tax provisions specified a certain type of income which is not taxable at slab rate but taxable at special rate like sale of equity shares/units of equity mutual funds through recognised stock exchange. While filing ITR For FY 2024-25, taxpayers will pay tax on equity shares/mutual funds based on date of sale, as tax rates are changed from 23rd July 2024. Long term capital gain will be taxed at a higher rate of 12.5% and short term at 20% if it is transferred after 22nd July 2024.'Tanna highlights that taxpayers should remember that deductions of 80C (like Contribution in PPF, Term plan premium, housing loan principal repayment etc) 80D (mediclaim premium) will not be available as deduction against capital gain even if the old tax regime is opted.'If resident Individuals and HUF don't have any other income except above said capital gain then the benefit of basic exemption limit of Rs 3 lakh under new tax regime and Rs 2.5 lakh under old tax regime will be available. Accordingly, capital gains above the exemption limit will be taxable at a special rate as applicable),' says Tanna.