Budget 2024 highlights: Capital gains tax change in budget 2024

By Vivek Dubey

CNBC-TV18.com

Published July  23, 2024

Short-term Gains

Short term capital gains tax on "certain" financial assets will be 20%.

Long-term Gains

Long-term capital gains tax will be 12.5%, the exemption will be increased to ₹1.25 lakh.

Asset Holding Period

Unlisted and non-financial assets will have to be held for at least two years to qualify for long-term capital gains.

Market reaction

Sensex fell over 630 points after the changes to capital gains tax.

Expert Opinions

"The increase in capital gains tax for listed companies is a bit of a disappointment," said Ashok Wadhwa of Ambit Private Limited.

Startups and Unlisted Companies

Startups and unlisted companies will benefit from the fall in long-term capital gains tax to 12.5% from 20%.

Short-term capital gains tax is now down to 20%, which ranged from 25% to 39% depending on whether the taxpayer is a company or an individual.

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