Capital Gains Tax on Shares, Mutual Funds & Property
Capital gains in India are governed by Sections 45–55A. Listed equity and equity MF held >12 months attract 10% LTCG (Section 112A) above ₹1L/year; property and unlisted shares held >24 months attract 20% LTCG with indexation (Section 112).
- Listed equity & equity MF: STCG 15% (Section 111A), LTCG 10% above ₹1L (Section 112A)
- Property & unlisted shares: LTCG 20% with indexation (Section 112) — 24-month holding for property
- Debt MF from 1 Apr 2023: always taxable at slab rates, no indexation
- Section 54 / 54F / 54EC: exemptions on residential property and NHAI/REC bonds
- Grandfathering: FMV as on 31 Jan 2018 for pre-2018 listed equity
Definition
Capital Gains Tax
What is Capital Gains Tax?
Capital gains in India are governed by Sections 45–55A. Listed equity and equity MF held >12 months attract 10% LTCG (Section 112A) above ₹1L/year; property and unlisted shares held >24 months attract 20% LTCG with indexation (Section 112).
Key rules to remember
- Listed equity & equity MF: STCG 15% (Section 111A), LTCG 10% above ₹1L (Section 112A)
- Property & unlisted shares: LTCG 20% with indexation (Section 112) — 24-month holding for property
- Debt MF from 1 Apr 2023: always taxable at slab rates, no indexation
- Section 54 / 54F / 54EC: exemptions on residential property and NHAI/REC bonds
- Grandfathering: FMV as on 31 Jan 2018 for pre-2018 listed equity
Worked example
Sale of ₹18L Mumbai flat in Dec 2024 (purchased ₹8L in 2015) — LTCG = ₹18L − (₹8L × CII 363/254) = ₹6.57L; 20% tax = ₹1.31L. Reinvest in NHAI bonds under 54EC to save entirely.
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We pick the correct form based on your income heads — salary, business, capital gains, foreign income — and confirm in writing before filing.
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