Budget 2024-25: Capital Gains Taxation Simplified & Rationalised

The Union Budget 2024-25 proposes significant changes to the taxation of capital gains. Short-term gains on certain financial assets will be taxed at 20%, while long-term gains on all assets will be taxed at 12.5%. The exemption limit for long-term capital gains on financial assets is increased from ₹1 lakh to ₹1.25 lakh per year. The holding period for long-term classification is set at 12 months for listed securities and 24 months for other assets. Additionally, indexation benefits for long-term gains on unlisted assets are removed to simplify tax computations.