Proposed changes in LTCG, STCG and STT explained
In 2024 Union Budget , Finance Minister proposed changes in the capital gains taxation regime. Long term gains on all financial and non-financial assets will attract a tax rate 12.5%. The proposed changes will attract higher tax for equity investor, meaning the rate has been increased by 2.5% for listed equity from 10% currently. The rates however has been reduced by 7.5% for other assets such as house property, unlisted equity shares etc. Thing to note is that the indexation benefit has also been removed on all the assets having long-term capital gains. The ministry later clarified that properties purchased before April 1, 2001, would continue to enjoy indexation. The move aims to rationalize taxes across all financial and non-financial assets, but it will impact investors who sell their property investments to reinvest in other asset classes. Indexation is used to connect prices and asset values by linking adjustments made t...