Equity Product
| In Case of Resident | ||||
| Product | Tax on short-term capital gain | Tax on Long-term capital gain | ||
| Transfer before July 23, 2024 | Transfer on or after July 23, 2024 | Transfer before July 23, 2024 | Transfer on or after July 23, 2024 | |
| Listed equity shares (STT Paid) | 15% | 20% | 10% on capital gain exceeding Rs. 1,00,000* | 12.5% on capital gain exceeding Rs. 1,25,000* |
| Listed equity shares (STT not paid) | Normal tax rate | No Change | 20% with indexation or 10% without indexation | 12.5% without indexation |
| Unlisted equity shares | Normal tax rate | No Change | 20% with indexation | 12.5% without indexation |
| Listed Preference shares | Normal tax rate | No Change | 20% with indexation or 10% without indexation | 12.5% without indexation |
| Unlisted Preference shares | Normal tax rate | No Change | 20% with indexation | 12.5% without indexation |
| GDRs [Note 1] | Normal tax rate | No Change | 10% under section 115ACA and 20% with indexation in other cases | 12.5% without indexation |
| Share warrants [Note 2] | Normal tax rate | No Change | - | - |
| Equity Oriented Mutual Funds (If STT Paid) | 15% | 20% | 10% on capital gain exceeding Rs. 1,00,000* | 12.5% on capital gain exceeding Rs. 1,25,000* |
| Equity Oriented Mutual Funds STT (if not Paid) | Normal tax rate | No Change | 20% with Indexation | 12.5% without indexation |
| Derivatives [Note 3] | - | - | - | - |
To compute long-Term capital gains for the Financial year 2024-25, the threshold limit of Rs 1,25,000 shall apply. The total long-term capital gains arising from transactions made between April 1,2024 and July 22, 2024 as well as from July 23, 2024, to March 31, 2025 will be aggregated for the purpose of threshold limit.
Debt Product
| In Case of Resident | ||||
| Product | Tax on short-term capital gain | Tax on Long-term capital gain | ||
| Transfer before July 23, 2024 | Transfer on or after July 23, 2024 | Transfer before July 23, 2024 | Transfer on or after July 23, 2024 | |
| Sovereign Gold Bond (Listed) [Note 5] | Normal tax rate | No Change | 20% with indexation or 10% without indexation | 12.5% without indexation |
| Capital Indexed Bond (Listed) | Normal tax rate | No Change | 20% with indexation or 10% without indexation | 12.5% without indexation |
| Capital Indexed Bond (Unlisted) | Normal tax rate | Normal tax rate as per Section 50AA | 20% with indexation | Taxable as a short-term capital gain at applicable rates as per Section 50AA |
| Zero-coupon Bond | Normal tax rate | No Change | 10% without indexation | 12.5% without indexation |
| Any other Bond (Listed) | Normal tax rate | No Change | 10% without indexation | 12.5% without indexation |
| Any other Bond (Unlisted) | Normal tax rate | Normal tax rate as per Section 50AA | 20% without indexation | Taxable as a short-term capital gain at applicable rates as per Section 50AA |
| Debentures (Listed) | Normal tax rate | No Change | 10% without indexation | 12.5% without indexation |
| Debentures (Unlisted) | Normal tax rate | Normal tax rate as per Section 50AA | 20% without indexation | Taxable as a short-term capital gain at applicable rates as per Section 50AA |
| Market Linked Debentures (MLDs) | Normal tax rate | No Change | - | - |
| Specified Mutual Funds (SMFs) | Normal tax rate | No Change | - | - |
| Other Mutual fund | Normal tax rate | No Change | 20% with indexation | 12.5% without indexation |
Note 1: Tax rate in case of conversion of GDR into other security would be same as applicable at the time of transfer of GDRs.
Note 2: Tenure of share warrants shall not exceed 18 months from the date of their allotment in the IPO or Right Issue or FPO, asthe case may be. Thus, short-term capital gain shall arise in every situation on transfer of share warrants or conversion thereofinto shares.
Note 3: Income from derivatives is considered as business income in case of every person other than FPIs and tax is charged asapplicable tax rates. Transfer of derivatives would not lead to arise of long-term capital gains as the maximum holding period ofderivatives is 3 months. However, in case of FPIs, the resultant gains from derivatives shall always be short-term capital gains.
Note 4: Specified funds is defined under Section 10(4D) to mean Category III Alternative Investment Fund, retail fund, ExchangeTraded Fund (ETF)10 and investment division of banking unit located in IFSC.
Note 5: Capital gain arising to an Individual on redemption of Sovereign Gold Bond shall not be chargeable to tax by virtue ofsection 47 of the Income-tax Act.
