TAX Solutions

🚨 Capital Gains Simplified | Income Tax Act, 2025 (Effective 1 April 2026)

The new tax regime brings a major simplification in Capital Gains taxation by reducing complexity and standardizing rules.

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🔍 Key Highlights:

✔️ Only 2 Holding Periods Now
• Listed assets → 12 months
• Other assets → 24 months

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💰 Short-Term Capital Gains (STCG)

• Listed Equity / Equity MF → 20% (Flat)
• Other Assets → Taxed at Slab Rates
• Debt Funds → Always taxed at Slab Rates

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📈 Long-Term Capital Gains (LTCG)

• Listed Equity → 12.5% (₹1.25L exemption)
• Other Assets → 12.5% (No Indexation)

👉 Major Change: Indexation benefit removed for most assets

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🏠 Special Rule for Property
If purchased before July 2024:
Choose between
• 12.5% (without indexation) OR
• 20% (with indexation)

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💡 Tax Saving Options Still Available

• Section 54 → Reinvest in house property
• Section 54F → Invest sale proceeds in house
• Section 54EC → Invest in capital gain bonds

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📊 Bottom Line:
Simpler rules ✅
Lower LTCG rates ✅
But loss of indexation increases tax impact ⚠️

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