1) There will be only two holding periods — 12 and 24 months — to qualify for long-term capital assets. All listed securities will be classified as long-term if held for more than 12 months or one year. All other asset classes will be classified as long-term if held for more than 24 months or two years.
2) Long-term capital gains (LTCG) will be uniformly taxed at 12% for all classes of assets. The indexation benefit that investors used to get earlier, was removed in Budget 2024.
3) The short-term capital gains on stocks, equity funds, and units of business trust (InvIT and REIT) will be taxed at 20% as against 15% earlier. For other assets, there is no change in the STCG rate after Budget 2024.
However, as a relief, the Budget 2024 has increased the exemption limit for shares and equity-oriented funds to Rs 1.25 from Rs 1 lakh per year.
