The Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman on 23 July presented the Union Budget 2024-25 in Parliament.
Finance Minister Nirmala Sitharaman made an important announcement regarding the simplification of the capital gains tax rates.
The new updates entail a 5% increase in the short-term capital gains tax (STCG) on certain financial assets, raising the rate to 20% from the previous rate of 15%.
Finance Minister proposed that the long term gains on all financial and non-financial assets will attract a tax rate of 12.5 per cent.
For the benefit of the lower and middle-income classes, she proposed to increase the limit of exemption of long-term capital gains on certain financial assets from ₹ 1lakh to ₹ 1.25 lakh per year.
The listed financial assets held for more than a year will be classified as long term, while unlisted financial assets and all non-financial assets will have to be held for at least two years to be classified as long-term.
