Capital gains: rates and holding periods
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Updated 03 Oct 2026
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AI summary
Short and long term, the 12.5% and 20% rates, the ₹1.25 lakh exemption and holding periods.
5 sections
Holding period for long term
| Asset | Long term if held more than |
|---|---|
| Listed shares, equity mutual funds, listed bonds, units of business trusts | 12 months |
| Everything else (property, gold, unlisted shares) | 24 months |
| Debt mutual funds bought after 1 April 2023, market-linked debentures | Always short term (slab rate) |
Rates
| Asset | Short term | Long term |
|---|---|---|
| Listed equity and equity funds (STT paid) | 20% (section 196) | 12.5% above ₹1.25 lakh a year (section 198) |
| Property, gold, unlisted shares | Slab rate | 12.5% without indexation (section 197) |
| Debt funds (post April 2023), MLDs | Slab rate | Slab rate |
Property bought before 23 July 2024
Resident individuals and HUFs can choose the lower of: 12.5% without indexation, or 20% with indexation. The cost inflation index for 2026-27 is 384.
Securities Transaction Tax (STT) — raised by Budget 2026
From 1 April 2026: futures 0.05% (from 0.02%) and options 0.15% of premium on sale and 0.15% on exercise.
Buybacks — changed by Budget 2026
From 1 April 2026, money received on a share buyback is taxed as capital gains in the shareholder's hands (not as dividend). Promoters pay an additional tax, taking their effective rate to about 22% (companies) or 30% (others).
Sources
#capital gains#stcg#ltcg#12.5%#20% stcg#1.25 lakh#holding period#equity tax#mutual fund tax#section 196#section 198#property sale tax
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