Long term Capital Gains tax hiked from 10% to 12.5%

23 Jul 2024 , 12:31 PM

Budget 2024 has increased Long term Capital Gains tax from 10% to 12.5%. Listed financial assets held more than a year will be classified as long term. Short term gains on certain financial assets also hiked to 20 percent.

In a significant blow to Futures and Options (F&O) traders, Finance Minister Nirmala Sitharaman increased the Securities Transaction Tax rate from 0.01 percent to 0.02 percent. Post implementing this, equity and index traders will have to pay double the tax for their trade.

For the benefit of the lower and middle-income classes, the limit of exemption on capital gains has increased on certain financial assets to ₹ 1.25 lakh per year.